Correlation Between Flutter Entertainment and Jacquet Metal
Can any of the company-specific risk be diversified away by investing in both Flutter Entertainment and Jacquet Metal 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 Jacquet Metal 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 Jacquet Metal Service, you can compare the effects of market volatilities on Flutter Entertainment and Jacquet Metal 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 Jacquet Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flutter Entertainment and Jacquet Metal.
Diversification Opportunities for Flutter Entertainment and Jacquet Metal
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Flutter and Jacquet is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Flutter Entertainment PLC and Jacquet Metal Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jacquet Metal Service 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 Jacquet Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jacquet Metal Service has no effect on the direction of Flutter Entertainment i.e., Flutter Entertainment and Jacquet Metal go up and down completely randomly.
Pair Corralation between Flutter Entertainment and Jacquet Metal
Assuming the 90 days horizon Flutter Entertainment PLC is expected to generate 1.85 times more return on investment than Jacquet Metal. However, Flutter Entertainment is 1.85 times more volatile than Jacquet Metal Service. It trades about 0.35 of its potential returns per unit of risk. Jacquet Metal Service is currently generating about 0.03 per unit of risk. If you would invest 21,180 in Flutter Entertainment PLC on September 2, 2024 and sell it today you would earn a total of 4,440 from holding Flutter Entertainment PLC or generate 20.96% 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. Jacquet Metal Service
Performance |
| Timeline |
| Flutter Entertainment PLC |
| Jacquet Metal Service |
Flutter Entertainment and Jacquet Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flutter Entertainment and Jacquet Metal
The main advantage of trading using opposite Flutter Entertainment and Jacquet Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flutter Entertainment position performs unexpectedly, Jacquet Metal 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 Jacquet Metal will offset losses from the drop in Jacquet Metal's long position.| Flutter Entertainment vs. Jacquet Metal Service | Flutter Entertainment vs. GREENX METALS LTD | Flutter Entertainment vs. ePlay Digital | Flutter Entertainment vs. GALENA MINING LTD |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |