Correlation Between Flutter Entertainment and GREENLIGHT CAP
Can any of the company-specific risk be diversified away by investing in both Flutter Entertainment and GREENLIGHT CAP 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 GREENLIGHT CAP 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 GREENLIGHT CAP RE, you can compare the effects of market volatilities on Flutter Entertainment and GREENLIGHT CAP 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 GREENLIGHT CAP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flutter Entertainment and GREENLIGHT CAP.
Diversification Opportunities for Flutter Entertainment and GREENLIGHT CAP
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Flutter and GREENLIGHT is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Flutter Entertainment PLC and GREENLIGHT CAP RE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GREENLIGHT CAP RE 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 GREENLIGHT CAP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GREENLIGHT CAP RE has no effect on the direction of Flutter Entertainment i.e., Flutter Entertainment and GREENLIGHT CAP go up and down completely randomly.
Pair Corralation between Flutter Entertainment and GREENLIGHT CAP
Assuming the 90 days trading horizon Flutter Entertainment PLC is expected to generate 1.36 times more return on investment than GREENLIGHT CAP. However, Flutter Entertainment is 1.36 times more volatile than GREENLIGHT CAP RE. It trades about 0.11 of its potential returns per unit of risk. GREENLIGHT CAP RE is currently generating about 0.07 per unit of risk. If you would invest 17,140 in Flutter Entertainment PLC on September 24, 2024 and sell it today you would earn a total of 7,920 from holding Flutter Entertainment PLC or generate 46.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Flutter Entertainment PLC vs. GREENLIGHT CAP RE
Performance |
| Timeline |
| Flutter Entertainment PLC |
| GREENLIGHT CAP RE |
Flutter Entertainment and GREENLIGHT CAP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flutter Entertainment and GREENLIGHT CAP
The main advantage of trading using opposite Flutter Entertainment and GREENLIGHT CAP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flutter Entertainment position performs unexpectedly, GREENLIGHT CAP 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 GREENLIGHT CAP will offset losses from the drop in GREENLIGHT CAP's long position.| Flutter Entertainment vs. Apple Inc | Flutter Entertainment vs. Apple Inc | Flutter Entertainment vs. Apple Inc | Flutter Entertainment vs. Apple Inc |
| GREENLIGHT CAP vs. COFCO Joycome Foods | GREENLIGHT CAP vs. Tower One Wireless | GREENLIGHT CAP vs. Ebro Foods SA | GREENLIGHT CAP vs. Astral Foods Limited |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |