Correlation Between Flutter Entertainment and Suntory Beverage
Can any of the company-specific risk be diversified away by investing in both Flutter Entertainment and Suntory Beverage 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 Suntory Beverage 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 Suntory Beverage Food, you can compare the effects of market volatilities on Flutter Entertainment and Suntory Beverage 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 Suntory Beverage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flutter Entertainment and Suntory Beverage.
Diversification Opportunities for Flutter Entertainment and Suntory Beverage
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Flutter and Suntory is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Flutter Entertainment PLC and Suntory Beverage Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suntory Beverage Food 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 Suntory Beverage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suntory Beverage Food has no effect on the direction of Flutter Entertainment i.e., Flutter Entertainment and Suntory Beverage go up and down completely randomly.
Pair Corralation between Flutter Entertainment and Suntory Beverage
Assuming the 90 days trading horizon Flutter Entertainment PLC is expected to generate 1.22 times more return on investment than Suntory Beverage. However, Flutter Entertainment is 1.22 times more volatile than Suntory Beverage Food. It trades about 0.34 of its potential returns per unit of risk. Suntory Beverage Food is currently generating about 0.01 per unit of risk. If you would invest 20,970 in Flutter Entertainment PLC on August 25, 2024 and sell it today you would earn a total of 3,730 from holding Flutter Entertainment PLC or generate 17.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Flutter Entertainment PLC vs. Suntory Beverage Food
Performance |
| Timeline |
| Flutter Entertainment PLC |
| Suntory Beverage Food |
Flutter Entertainment and Suntory Beverage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flutter Entertainment and Suntory Beverage
The main advantage of trading using opposite Flutter Entertainment and Suntory Beverage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flutter Entertainment position performs unexpectedly, Suntory Beverage 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 Suntory Beverage will offset losses from the drop in Suntory Beverage's long position.| Flutter Entertainment vs. Apple Inc | Flutter Entertainment vs. Apple Inc | Flutter Entertainment vs. Apple Inc | Flutter Entertainment vs. Apple Inc |
| Suntory Beverage vs. PARKEN Sport Entertainment | Suntory Beverage vs. PT Global Mediacom | Suntory Beverage vs. Flutter Entertainment PLC | Suntory Beverage vs. REVO INSURANCE SPA |
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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