Correlation Between Flutter Entertainment and Retailing Fund
Can any of the company-specific risk be diversified away by investing in both Flutter Entertainment and Retailing Fund 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 Retailing Fund 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 Retailing Fund Investor, you can compare the effects of market volatilities on Flutter Entertainment and Retailing Fund 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 Retailing Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flutter Entertainment and Retailing Fund.
Diversification Opportunities for Flutter Entertainment and Retailing Fund
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Flutter and Retailing is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Flutter Entertainment plc and Retailing Fund Investor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Retailing Fund Investor 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 Retailing Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Retailing Fund Investor has no effect on the direction of Flutter Entertainment i.e., Flutter Entertainment and Retailing Fund go up and down completely randomly.
Pair Corralation between Flutter Entertainment and Retailing Fund
Given the investment horizon of 90 days Flutter Entertainment plc is expected to generate 2.36 times more return on investment than Retailing Fund. However, Flutter Entertainment is 2.36 times more volatile than Retailing Fund Investor. It trades about 0.06 of its potential returns per unit of risk. Retailing Fund Investor is currently generating about 0.05 per unit of risk. If you would invest 14,871 in Flutter Entertainment plc on August 26, 2024 and sell it today you would earn a total of 12,681 from holding Flutter Entertainment plc or generate 85.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Flutter Entertainment plc vs. Retailing Fund Investor
Performance |
| Timeline |
| Flutter Entertainment plc |
| Retailing Fund Investor |
Flutter Entertainment and Retailing Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flutter Entertainment and Retailing Fund
The main advantage of trading using opposite Flutter Entertainment and Retailing Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flutter Entertainment position performs unexpectedly, Retailing Fund 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 Retailing Fund will offset losses from the drop in Retailing Fund's long position.| Flutter Entertainment vs. KeyCorp | Flutter Entertainment vs. Commonwealth Bank of | Flutter Entertainment vs. Juniata Valley Financial | Flutter Entertainment vs. BCB Bancorp |
| Retailing Fund vs. International Paper | Retailing Fund vs. O I Glass | Retailing Fund vs. Smurfit WestRock plc | Retailing Fund vs. Driven Brands Holdings |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |