Correlation Between Flutter Entertainment and Sportsmans Warehouse
Can any of the company-specific risk be diversified away by investing in both Flutter Entertainment and Sportsmans Warehouse 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 Sportsmans Warehouse 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 Sportsmans Warehouse Holdings, you can compare the effects of market volatilities on Flutter Entertainment and Sportsmans Warehouse 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 Sportsmans Warehouse. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flutter Entertainment and Sportsmans Warehouse.
Diversification Opportunities for Flutter Entertainment and Sportsmans Warehouse
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Flutter and Sportsmans is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Flutter Entertainment PLC and Sportsmans Warehouse Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sportsmans Warehouse 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 Sportsmans Warehouse. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sportsmans Warehouse has no effect on the direction of Flutter Entertainment i.e., Flutter Entertainment and Sportsmans Warehouse go up and down completely randomly.
Pair Corralation between Flutter Entertainment and Sportsmans Warehouse
Assuming the 90 days trading horizon Flutter Entertainment PLC is expected to generate 0.41 times more return on investment than Sportsmans Warehouse. However, Flutter Entertainment PLC is 2.44 times less risky than Sportsmans Warehouse. It trades about 0.25 of its potential returns per unit of risk. Sportsmans Warehouse Holdings is currently generating about -0.02 per unit of risk. If you would invest 23,350 in Flutter Entertainment PLC on September 13, 2024 and sell it today you would earn a total of 2,930 from holding Flutter Entertainment PLC or generate 12.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Flutter Entertainment PLC vs. Sportsmans Warehouse Holdings
Performance |
| Timeline |
| Flutter Entertainment PLC |
| Sportsmans Warehouse |
Flutter Entertainment and Sportsmans Warehouse Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flutter Entertainment and Sportsmans Warehouse
The main advantage of trading using opposite Flutter Entertainment and Sportsmans Warehouse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flutter Entertainment position performs unexpectedly, Sportsmans Warehouse 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 Sportsmans Warehouse will offset losses from the drop in Sportsmans Warehouse's long position.| Flutter Entertainment vs. Apple Inc | Flutter Entertainment vs. Apple Inc | Flutter Entertainment vs. Apple Inc | Flutter Entertainment vs. Apple Inc |
| Sportsmans Warehouse vs. Superior Plus Corp | Sportsmans Warehouse vs. SIVERS SEMICONDUCTORS AB | Sportsmans Warehouse vs. Norsk Hydro ASA | Sportsmans Warehouse vs. Reliance Steel Aluminum |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |