Correlation Between Flutter Entertainment and Altia Oyj
Can any of the company-specific risk be diversified away by investing in both Flutter Entertainment and Altia Oyj 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 Altia Oyj 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 Altia Oyj, you can compare the effects of market volatilities on Flutter Entertainment and Altia Oyj 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 Altia Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flutter Entertainment and Altia Oyj.
Diversification Opportunities for Flutter Entertainment and Altia Oyj
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Flutter and Altia is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Flutter Entertainment PLC and Altia Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altia Oyj 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 Altia Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altia Oyj has no effect on the direction of Flutter Entertainment i.e., Flutter Entertainment and Altia Oyj go up and down completely randomly.
Pair Corralation between Flutter Entertainment and Altia Oyj
Assuming the 90 days trading horizon Flutter Entertainment is expected to generate 6.9 times less return on investment than Altia Oyj. But when comparing it to its historical volatility, Flutter Entertainment PLC is 1.78 times less risky than Altia Oyj. It trades about 0.06 of its potential returns per unit of risk. Altia Oyj is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 266.00 in Altia Oyj on November 27, 2024 and sell it today you would earn a total of 48.00 from holding Altia Oyj or generate 18.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Flutter Entertainment PLC vs. Altia Oyj
Performance |
| Timeline |
| Flutter Entertainment PLC |
| Altia Oyj |
Flutter Entertainment and Altia Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flutter Entertainment and Altia Oyj
The main advantage of trading using opposite Flutter Entertainment and Altia Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flutter Entertainment position performs unexpectedly, Altia Oyj 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 Altia Oyj will offset losses from the drop in Altia Oyj's long position.| Flutter Entertainment vs. BioNTech SE | Flutter Entertainment vs. Sunny Optical Technology | Flutter Entertainment vs. BAKED GAMES SA | Flutter Entertainment vs. Kingdee International Software |
| Altia Oyj vs. Ping An Insurance | Altia Oyj vs. Singapore Reinsurance | Altia Oyj vs. Nordic Semiconductor ASA | Altia Oyj vs. The Hanover Insurance |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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