Correlation Between Perseus Mining and Flutter Entertainment
Can any of the company-specific risk be diversified away by investing in both Perseus Mining 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 Perseus Mining and Flutter Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Perseus Mining Limited and Flutter Entertainment PLC, you can compare the effects of market volatilities on Perseus Mining 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 Perseus Mining with a short position of Flutter Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Perseus Mining and Flutter Entertainment.
Diversification Opportunities for Perseus Mining and Flutter Entertainment
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Perseus and Flutter is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Perseus Mining Limited 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 Perseus Mining 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 Perseus Mining Limited 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 Perseus Mining i.e., Perseus Mining and Flutter Entertainment go up and down completely randomly.
Pair Corralation between Perseus Mining and Flutter Entertainment
Assuming the 90 days horizon Perseus Mining Limited is expected to under-perform the Flutter Entertainment. But the stock apears to be less risky and, when comparing its historical volatility, Perseus Mining Limited is 1.09 times less risky than Flutter Entertainment. The stock trades about -0.12 of its potential returns per unit of risk. The Flutter Entertainment PLC is currently generating about 0.55 of returns per unit of risk over similar time horizon. If you would invest 20,520 in Flutter Entertainment PLC on August 28, 2024 and sell it today you would earn a total of 5,610 from holding Flutter Entertainment PLC or generate 27.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Perseus Mining Limited vs. Flutter Entertainment PLC
Performance |
| Timeline |
| Perseus Mining |
| Flutter Entertainment PLC |
Perseus Mining and Flutter Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Perseus Mining and Flutter Entertainment
The main advantage of trading using opposite Perseus Mining and Flutter Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perseus Mining 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.| Perseus Mining vs. HEALTHCARE REAL A | Perseus Mining vs. GUARDANT HEALTH CL | Perseus Mining vs. AUST AGRICULTURAL | Perseus Mining vs. Bumrungrad Hospital Public |
| Flutter Entertainment vs. Casio Computer CoLtd | Flutter Entertainment vs. FANDIFI TECHNOLOGY P | Flutter Entertainment vs. MACOM Technology Solutions | Flutter Entertainment vs. X FAB Silicon Foundries |
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.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |