Correlation Between Flutter Entertainment and Thor Mining
Can any of the company-specific risk be diversified away by investing in both Flutter Entertainment and Thor Mining 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 Thor Mining 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 Thor Mining PLC, you can compare the effects of market volatilities on Flutter Entertainment and Thor Mining 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 Thor Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flutter Entertainment and Thor Mining.
Diversification Opportunities for Flutter Entertainment and Thor Mining
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Flutter and Thor is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Flutter Entertainment PLC and Thor Mining PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thor Mining PLC 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 Thor Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thor Mining PLC has no effect on the direction of Flutter Entertainment i.e., Flutter Entertainment and Thor Mining go up and down completely randomly.
Pair Corralation between Flutter Entertainment and Thor Mining
Assuming the 90 days trading horizon Flutter Entertainment is expected to generate 4.51 times less return on investment than Thor Mining. But when comparing it to its historical volatility, Flutter Entertainment PLC is 2.39 times less risky than Thor Mining. It trades about 0.03 of its potential returns per unit of risk. Thor Mining PLC is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 70.00 in Thor Mining PLC on November 7, 2024 and sell it today you would earn a total of 2.00 from holding Thor Mining PLC or generate 2.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Flutter Entertainment PLC vs. Thor Mining PLC
Performance |
| Timeline |
| Flutter Entertainment PLC |
| Thor Mining PLC |
Flutter Entertainment and Thor Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flutter Entertainment and Thor Mining
The main advantage of trading using opposite Flutter Entertainment and Thor Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flutter Entertainment position performs unexpectedly, Thor Mining 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 Thor Mining will offset losses from the drop in Thor Mining's long position.| Flutter Entertainment vs. Tatton Asset Management | Flutter Entertainment vs. Universal Music Group | Flutter Entertainment vs. Fresenius Medical Care | Flutter Entertainment vs. Southwest Airlines Co |
| Thor Mining vs. Capital Metals PLC | Thor Mining vs. European Metals Holdings | Thor Mining vs. Polar Capital Technology | Thor Mining vs. Europa 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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