Correlation Between Flutter Entertainment and Intermediate Capital
Can any of the company-specific risk be diversified away by investing in both Flutter Entertainment and Intermediate Capital 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 Intermediate Capital 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 Intermediate Capital Group, you can compare the effects of market volatilities on Flutter Entertainment and Intermediate Capital 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 Intermediate Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flutter Entertainment and Intermediate Capital.
Diversification Opportunities for Flutter Entertainment and Intermediate Capital
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Flutter and Intermediate is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Flutter Entertainment PLC and Intermediate Capital Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intermediate Capital 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 Intermediate Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intermediate Capital has no effect on the direction of Flutter Entertainment i.e., Flutter Entertainment and Intermediate Capital go up and down completely randomly.
Pair Corralation between Flutter Entertainment and Intermediate Capital
Assuming the 90 days trading horizon Flutter Entertainment is expected to generate 1.07 times less return on investment than Intermediate Capital. In addition to that, Flutter Entertainment is 1.06 times more volatile than Intermediate Capital Group. It trades about 0.07 of its total potential returns per unit of risk. Intermediate Capital Group is currently generating about 0.08 per unit of volatility. If you would invest 109,357 in Intermediate Capital Group on August 30, 2024 and sell it today you would earn a total of 100,043 from holding Intermediate Capital Group or generate 91.48% 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. Intermediate Capital Group
Performance |
| Timeline |
| Flutter Entertainment PLC |
| Intermediate Capital |
Flutter Entertainment and Intermediate Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flutter Entertainment and Intermediate Capital
The main advantage of trading using opposite Flutter Entertainment and Intermediate Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flutter Entertainment position performs unexpectedly, Intermediate Capital 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 Intermediate Capital will offset losses from the drop in Intermediate Capital's long position.| Flutter Entertainment vs. Ondine Biomedical | Flutter Entertainment vs. Europa Metals | Flutter Entertainment vs. Lendinvest PLC | Flutter Entertainment vs. Neometals |
| Intermediate Capital vs. Toyota Motor Corp | Intermediate Capital vs. Neometals | Intermediate Capital vs. Coor Service Management | Intermediate Capital vs. JPMorgan ETFs ICAV |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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