Correlation Between Flutter Entertainment and Jadestone Energy
Can any of the company-specific risk be diversified away by investing in both Flutter Entertainment and Jadestone Energy 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 Jadestone Energy 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 Jadestone Energy, you can compare the effects of market volatilities on Flutter Entertainment and Jadestone Energy 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 Jadestone Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flutter Entertainment and Jadestone Energy.
Diversification Opportunities for Flutter Entertainment and Jadestone Energy
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Flutter and Jadestone is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Flutter Entertainment PLC and Jadestone Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jadestone Energy 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 Jadestone Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jadestone Energy has no effect on the direction of Flutter Entertainment i.e., Flutter Entertainment and Jadestone Energy go up and down completely randomly.
Pair Corralation between Flutter Entertainment and Jadestone Energy
Assuming the 90 days trading horizon Flutter Entertainment PLC is expected to generate 1.13 times more return on investment than Jadestone Energy. However, Flutter Entertainment is 1.13 times more volatile than Jadestone Energy. It trades about 0.4 of its potential returns per unit of risk. Jadestone Energy is currently generating about -0.04 per unit of risk. If you would invest 1,797,000 in Flutter Entertainment PLC on September 2, 2024 and sell it today you would earn a total of 364,000 from holding Flutter Entertainment PLC or generate 20.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Flutter Entertainment PLC vs. Jadestone Energy
Performance |
| Timeline |
| Flutter Entertainment PLC |
| Jadestone Energy |
Flutter Entertainment and Jadestone Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flutter Entertainment and Jadestone Energy
The main advantage of trading using opposite Flutter Entertainment and Jadestone Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flutter Entertainment position performs unexpectedly, Jadestone Energy 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 Jadestone Energy will offset losses from the drop in Jadestone Energy's long position.| Flutter Entertainment vs. Viridian Therapeutics | Flutter Entertainment vs. CVR Energy | Flutter Entertainment vs. Nationwide Building Society | Flutter Entertainment vs. Dollar Tree |
| Jadestone Energy vs. Ally Financial | Jadestone Energy vs. Hochschild Mining plc | Jadestone Energy vs. Sydbank | Jadestone Energy vs. Metals Exploration Plc |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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