Correlation Between Mativ Holdings and Flutter Entertainment
Can any of the company-specific risk be diversified away by investing in both Mativ Holdings 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 Mativ Holdings and Flutter Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mativ Holdings and Flutter Entertainment plc, you can compare the effects of market volatilities on Mativ Holdings 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 Mativ Holdings with a short position of Flutter Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mativ Holdings and Flutter Entertainment.
Diversification Opportunities for Mativ Holdings and Flutter Entertainment
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mativ and Flutter is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Mativ Holdings 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 Mativ Holdings 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 Mativ Holdings 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 Mativ Holdings i.e., Mativ Holdings and Flutter Entertainment go up and down completely randomly.
Pair Corralation between Mativ Holdings and Flutter Entertainment
Given the investment horizon of 90 days Mativ Holdings is expected to under-perform the Flutter Entertainment. In addition to that, Mativ Holdings is 1.98 times more volatile than Flutter Entertainment plc. It trades about -0.05 of its total potential returns per unit of risk. Flutter Entertainment plc is currently generating about 0.16 per unit of volatility. If you would invest 18,881 in Flutter Entertainment plc on September 13, 2024 and sell it today you would earn a total of 8,866 from holding Flutter Entertainment plc or generate 46.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.2% |
| Values | Daily Returns |
Mativ Holdings vs. Flutter Entertainment plc
Performance |
| Timeline |
| Mativ Holdings |
| Flutter Entertainment plc |
Mativ Holdings and Flutter Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mativ Holdings and Flutter Entertainment
The main advantage of trading using opposite Mativ Holdings and Flutter Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mativ Holdings 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.| Mativ Holdings vs. Orion Engineered Carbons | Mativ Holdings vs. Select Energy Services | Mativ Holdings vs. Perimeter Solutions SA | Mativ Holdings vs. FutureFuel Corp |
| Flutter Entertainment vs. Pentair PLC | Flutter Entertainment vs. Grupo Aeroportuario del | Flutter Entertainment vs. Jutal Offshore Oil | Flutter Entertainment vs. FitLife Brands, Common |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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