Correlation Between Ihuman and Flutter Entertainment
Can any of the company-specific risk be diversified away by investing in both Ihuman and Flutter Entertainment 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 Ihuman and Flutter Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ihuman Inc and Flutter Entertainment plc, you can compare the effects of market volatilities on Ihuman and Flutter Entertainment 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 Ihuman with a short position of Flutter Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ihuman and Flutter Entertainment.
Diversification Opportunities for Ihuman and Flutter Entertainment
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ihuman and Flutter is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Ihuman Inc and Flutter Entertainment plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flutter Entertainment plc and Ihuman 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 Ihuman Inc are associated (or correlated) with Flutter Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flutter Entertainment plc has no effect on the direction of Ihuman i.e., Ihuman and Flutter Entertainment go up and down completely randomly.
Pair Corralation between Ihuman and Flutter Entertainment
Allowing for the 90-day total investment horizon Ihuman Inc is expected to generate 1.71 times more return on investment than Flutter Entertainment. However, Ihuman is 1.71 times more volatile than Flutter Entertainment plc. It trades about 0.16 of its potential returns per unit of risk. Flutter Entertainment plc is currently generating about 0.14 per unit of risk. If you would invest 163.00 in Ihuman Inc on September 15, 2024 and sell it today you would earn a total of 13.00 from holding Ihuman Inc or generate 7.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ihuman Inc vs. Flutter Entertainment plc
Performance |
| Timeline |
| Ihuman Inc |
| Flutter Entertainment plc |
Ihuman and Flutter Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ihuman and Flutter Entertainment
The main advantage of trading using opposite Ihuman and Flutter Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ihuman position performs unexpectedly, Flutter Entertainment 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 Flutter Entertainment will offset losses from the drop in Flutter Entertainment's long position.| Ihuman vs. Genius Group | Ihuman vs. Wah Fu Education | Ihuman vs. Jianzhi Education Technology | Ihuman vs. Elite Education Group |
| Flutter Entertainment vs. Grayscale Digital Large | Flutter Entertainment vs. Quantum eMotion | Flutter Entertainment vs. Bright Minds Biosciences | Flutter Entertainment vs. Eastman Kodak Co |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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