Correlation Between Lifeway Foods and Flutter Entertainment
Can any of the company-specific risk be diversified away by investing in both Lifeway Foods 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 Lifeway Foods and Flutter Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lifeway Foods and Flutter Entertainment PLC, you can compare the effects of market volatilities on Lifeway Foods 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 Lifeway Foods with a short position of Flutter Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lifeway Foods and Flutter Entertainment.
Diversification Opportunities for Lifeway Foods and Flutter Entertainment
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Lifeway and Flutter is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Lifeway Foods 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 Lifeway Foods 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 Lifeway Foods 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 Lifeway Foods i.e., Lifeway Foods and Flutter Entertainment go up and down completely randomly.
Pair Corralation between Lifeway Foods and Flutter Entertainment
Assuming the 90 days horizon Lifeway Foods is expected to generate 2.17 times more return on investment than Flutter Entertainment. However, Lifeway Foods is 2.17 times more volatile than Flutter Entertainment PLC. It trades about 0.06 of its potential returns per unit of risk. Flutter Entertainment PLC is currently generating about 0.1 per unit of risk. If you would invest 1,330 in Lifeway Foods on September 14, 2024 and sell it today you would earn a total of 930.00 from holding Lifeway Foods or generate 69.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lifeway Foods vs. Flutter Entertainment PLC
Performance |
| Timeline |
| Lifeway Foods |
| Flutter Entertainment PLC |
Lifeway Foods and Flutter Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lifeway Foods and Flutter Entertainment
The main advantage of trading using opposite Lifeway Foods and Flutter Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lifeway Foods 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.| Lifeway Foods vs. Hormel Foods | Lifeway Foods vs. Superior Plus Corp | Lifeway Foods vs. SIVERS SEMICONDUCTORS AB | Lifeway Foods vs. NorAm Drilling AS |
| Flutter Entertainment vs. Apple Inc | Flutter Entertainment vs. Apple Inc | Flutter Entertainment vs. Apple Inc | Flutter Entertainment vs. Apple Inc |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |