Correlation Between Flutter Entertainment and Caseys General
Can any of the company-specific risk be diversified away by investing in both Flutter Entertainment and Caseys General 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 Caseys General 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 Caseys General Stores, you can compare the effects of market volatilities on Flutter Entertainment and Caseys General 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 Caseys General. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flutter Entertainment and Caseys General.
Diversification Opportunities for Flutter Entertainment and Caseys General
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Flutter and Caseys is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Flutter Entertainment PLC and Caseys General Stores in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caseys General Stores 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 Caseys General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caseys General Stores has no effect on the direction of Flutter Entertainment i.e., Flutter Entertainment and Caseys General go up and down completely randomly.
Pair Corralation between Flutter Entertainment and Caseys General
Assuming the 90 days trading horizon Flutter Entertainment PLC is expected to generate 1.04 times more return on investment than Caseys General. However, Flutter Entertainment is 1.04 times more volatile than Caseys General Stores. It trades about 0.53 of its potential returns per unit of risk. Caseys General Stores is currently generating about 0.21 per unit of risk. If you would invest 20,520 in Flutter Entertainment PLC on August 28, 2024 and sell it today you would earn a total of 5,610 from holding Flutter Entertainment PLC or generate 27.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Flutter Entertainment PLC vs. Caseys General Stores
Performance |
| Timeline |
| Flutter Entertainment PLC |
| Caseys General Stores |
Flutter Entertainment and Caseys General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flutter Entertainment and Caseys General
The main advantage of trading using opposite Flutter Entertainment and Caseys General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flutter Entertainment position performs unexpectedly, Caseys General 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 Caseys General will offset losses from the drop in Caseys General's long position.| Flutter Entertainment vs. Apple Inc | Flutter Entertainment vs. Apple Inc | Flutter Entertainment vs. Apple Inc | Flutter Entertainment vs. Apple Inc |
| Caseys General vs. Apple Inc | Caseys General vs. Apple Inc | Caseys General vs. Apple Inc | Caseys General vs. Apple Inc |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |