Correlation Between Flutter Entertainment and HF FOODS
Can any of the company-specific risk be diversified away by investing in both Flutter Entertainment and HF FOODS 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 HF FOODS 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 HF FOODS GRP, you can compare the effects of market volatilities on Flutter Entertainment and HF FOODS 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 HF FOODS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flutter Entertainment and HF FOODS.
Diversification Opportunities for Flutter Entertainment and HF FOODS
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Flutter and 3GX is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Flutter Entertainment PLC and HF FOODS GRP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HF FOODS 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 HF FOODS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HF FOODS GRP has no effect on the direction of Flutter Entertainment i.e., Flutter Entertainment and HF FOODS go up and down completely randomly.
Pair Corralation between Flutter Entertainment and HF FOODS
Assuming the 90 days trading horizon Flutter Entertainment PLC is expected to generate 0.63 times more return on investment than HF FOODS. However, Flutter Entertainment PLC is 1.59 times less risky than HF FOODS. It trades about 0.14 of its potential returns per unit of risk. HF FOODS GRP is currently generating about -0.34 per unit of risk. If you would invest 24,630 in Flutter Entertainment PLC on November 3, 2024 and sell it today you would earn a total of 1,240 from holding Flutter Entertainment PLC or generate 5.03% 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. HF FOODS GRP
Performance |
| Timeline |
| Flutter Entertainment PLC |
| HF FOODS GRP |
Flutter Entertainment and HF FOODS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flutter Entertainment and HF FOODS
The main advantage of trading using opposite Flutter Entertainment and HF FOODS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flutter Entertainment position performs unexpectedly, HF FOODS 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 HF FOODS will offset losses from the drop in HF FOODS's long position.| Flutter Entertainment vs. ARROW ELECTRONICS | Flutter Entertainment vs. GRIFFIN MINING LTD | Flutter Entertainment vs. KIMBALL ELECTRONICS | Flutter Entertainment vs. Yanzhou Coal Mining |
| HF FOODS vs. Dairy Farm International | HF FOODS vs. Choice Hotels International | HF FOODS vs. Xenia Hotels Resorts | HF FOODS vs. DALATA HOTEL |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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