Correlation Between Flutter Entertainment and Brunner Investment
Can any of the company-specific risk be diversified away by investing in both Flutter Entertainment and Brunner Investment at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Flutter Entertainment and Brunner Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Flutter Entertainment PLC and Brunner Investment Trust, you can compare the effects of market volatilities on Flutter Entertainment and Brunner Investment and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Flutter Entertainment with a short position of Brunner Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flutter Entertainment and Brunner Investment.
Diversification Opportunities for Flutter Entertainment and Brunner Investment
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Flutter and Brunner is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Flutter Entertainment PLC and Brunner Investment Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brunner Investment Trust and Flutter Entertainment is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Flutter Entertainment PLC are associated (or correlated) with Brunner Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brunner Investment Trust has no effect on the direction of Flutter Entertainment i.e., Flutter Entertainment and Brunner Investment go up and down completely randomly.
Pair Corralation between Flutter Entertainment and Brunner Investment
Assuming the 90 days trading horizon Flutter Entertainment PLC is expected to generate 1.01 times more return on investment than Brunner Investment. However, Flutter Entertainment is 1.01 times more volatile than Brunner Investment Trust. It trades about 0.13 of its potential returns per unit of risk. Brunner Investment Trust is currently generating about -0.03 per unit of risk. If you would invest 2,090,000 in Flutter Entertainment PLC on November 3, 2024 and sell it today you would earn a total of 91,000 from holding Flutter Entertainment PLC or generate 4.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Flutter Entertainment PLC vs. Brunner Investment Trust
Performance |
| Timeline |
| Flutter Entertainment PLC |
| Brunner Investment Trust |
Flutter Entertainment and Brunner Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flutter Entertainment and Brunner Investment
The main advantage of trading using opposite Flutter Entertainment and Brunner Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flutter Entertainment position performs unexpectedly, Brunner Investment can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Brunner Investment will offset losses from the drop in Brunner Investment's long position.| Flutter Entertainment vs. Supermarket Income REIT | Flutter Entertainment vs. Berner Kantonalbank AG | Flutter Entertainment vs. MT Bank Corp | Flutter Entertainment vs. Check Point Software |
| Brunner Investment vs. Lindsell Train Investment | Brunner Investment vs. Global Net Lease | Brunner Investment vs. AcadeMedia AB | Brunner Investment vs. Ubisoft Entertainment |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Commodity Directory module to find actively traded commodities issued by global exchanges.
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