Correlation Between Flutter Entertainment and FUTURE GAMING
Can any of the company-specific risk be diversified away by investing in both Flutter Entertainment and FUTURE GAMING 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 FUTURE GAMING 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 FUTURE GAMING GRP, you can compare the effects of market volatilities on Flutter Entertainment and FUTURE GAMING 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 FUTURE GAMING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flutter Entertainment and FUTURE GAMING.
Diversification Opportunities for Flutter Entertainment and FUTURE GAMING
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Flutter and FUTURE is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Flutter Entertainment PLC and FUTURE GAMING GRP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FUTURE GAMING GRP 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 FUTURE GAMING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FUTURE GAMING GRP has no effect on the direction of Flutter Entertainment i.e., Flutter Entertainment and FUTURE GAMING go up and down completely randomly.
Pair Corralation between Flutter Entertainment and FUTURE GAMING
Assuming the 90 days horizon Flutter Entertainment PLC is expected to generate 0.84 times more return on investment than FUTURE GAMING. However, Flutter Entertainment PLC is 1.19 times less risky than FUTURE GAMING. It trades about 0.42 of its potential returns per unit of risk. FUTURE GAMING GRP is currently generating about -0.01 per unit of risk. If you would invest 20,610 in Flutter Entertainment PLC on August 29, 2024 and sell it today you would earn a total of 5,600 from holding Flutter Entertainment PLC or generate 27.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 91.3% |
| Values | Daily Returns |
Flutter Entertainment PLC vs. FUTURE GAMING GRP
Performance |
| Timeline |
| Flutter Entertainment PLC |
| FUTURE GAMING GRP |
Flutter Entertainment and FUTURE GAMING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flutter Entertainment and FUTURE GAMING
The main advantage of trading using opposite Flutter Entertainment and FUTURE GAMING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flutter Entertainment position performs unexpectedly, FUTURE GAMING 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 FUTURE GAMING will offset losses from the drop in FUTURE GAMING's long position.| Flutter Entertainment vs. CarsalesCom | Flutter Entertainment vs. Beyond Meat | Flutter Entertainment vs. CN MODERN DAIRY | Flutter Entertainment vs. PACIFIC ONLINE |
| FUTURE GAMING vs. Flutter Entertainment PLC | FUTURE GAMING vs. Scientific Games | FUTURE GAMING vs. International Game Technology | FUTURE GAMING vs. Superior Plus Corp |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |