Correlation Between Flutter Entertainment and GreenX Metals
Can any of the company-specific risk be diversified away by investing in both Flutter Entertainment and GreenX Metals 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 GreenX Metals 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 GreenX Metals, you can compare the effects of market volatilities on Flutter Entertainment and GreenX Metals 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 GreenX Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flutter Entertainment and GreenX Metals.
Diversification Opportunities for Flutter Entertainment and GreenX Metals
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Flutter and GreenX is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Flutter Entertainment PLC and GreenX Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GreenX Metals 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 GreenX Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GreenX Metals has no effect on the direction of Flutter Entertainment i.e., Flutter Entertainment and GreenX Metals go up and down completely randomly.
Pair Corralation between Flutter Entertainment and GreenX Metals
Assuming the 90 days trading horizon Flutter Entertainment PLC is expected to generate 0.59 times more return on investment than GreenX Metals. However, Flutter Entertainment PLC is 1.69 times less risky than GreenX Metals. It trades about 0.15 of its potential returns per unit of risk. GreenX Metals is currently generating about -0.05 per unit of risk. If you would invest 1,481,500 in Flutter Entertainment PLC on August 26, 2024 and sell it today you would earn a total of 676,500 from holding Flutter Entertainment PLC or generate 45.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Flutter Entertainment PLC vs. GreenX Metals
Performance |
| Timeline |
| Flutter Entertainment PLC |
| GreenX Metals |
Flutter Entertainment and GreenX Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flutter Entertainment and GreenX Metals
The main advantage of trading using opposite Flutter Entertainment and GreenX Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flutter Entertainment position performs unexpectedly, GreenX Metals 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 GreenX Metals will offset losses from the drop in GreenX Metals' long position.| Flutter Entertainment vs. Direct Line Insurance | Flutter Entertainment vs. European Metals Holdings | Flutter Entertainment vs. Europa Metals | Flutter Entertainment vs. Sparebank 1 SR |
| GreenX Metals vs. Spirent Communications plc | GreenX Metals vs. European Metals Holdings | GreenX Metals vs. Zoom Video Communications | GreenX Metals vs. Cornish Metals |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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