Correlation Between Flutter Entertainment and La Française
Can any of the company-specific risk be diversified away by investing in both Flutter Entertainment and La Française 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 La Française 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 La Franaise des, you can compare the effects of market volatilities on Flutter Entertainment and La Française 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 La Française. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flutter Entertainment and La Française.
Diversification Opportunities for Flutter Entertainment and La Française
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Flutter and 1WE is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Flutter Entertainment PLC and La Franaise des in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on La Franaise des 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 La Française. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of La Franaise des has no effect on the direction of Flutter Entertainment i.e., Flutter Entertainment and La Française go up and down completely randomly.
Pair Corralation between Flutter Entertainment and La Française
Assuming the 90 days horizon Flutter Entertainment PLC is expected to generate 1.68 times more return on investment than La Française. However, Flutter Entertainment is 1.68 times more volatile than La Franaise des. It trades about 0.37 of its potential returns per unit of risk. La Franaise des is currently generating about -0.25 per unit of risk. If you would invest 21,030 in Flutter Entertainment PLC on September 3, 2024 and sell it today you would earn a total of 4,590 from holding Flutter Entertainment PLC or generate 21.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Flutter Entertainment PLC vs. La Franaise des
Performance |
| Timeline |
| Flutter Entertainment PLC |
| La Franaise des |
Flutter Entertainment and La Française Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flutter Entertainment and La Française
The main advantage of trading using opposite Flutter Entertainment and La Française positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flutter Entertainment position performs unexpectedly, La Française 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 La Française will offset losses from the drop in La Française's long position.| Flutter Entertainment vs. Evolution AB | Flutter Entertainment vs. Churchill Downs Incorporated | Flutter Entertainment vs. Churchill Downs Incorporated | Flutter Entertainment vs. La Franaise des |
| La Française vs. Bausch Health Companies | La Française vs. SENECA FOODS A | La Française vs. Ramsay Health Care | La Française vs. NXP Semiconductors NV |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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