Correlation Between Flutter Entertainment and DAX Index
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By analyzing existing cross correlation between Flutter Entertainment PLC and DAX Index, you can compare the effects of market volatilities on Flutter Entertainment and DAX Index 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 DAX Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flutter Entertainment and DAX Index.
Diversification Opportunities for Flutter Entertainment and DAX Index
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Flutter and DAX is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Flutter Entertainment PLC and DAX Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DAX Index 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 DAX Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DAX Index has no effect on the direction of Flutter Entertainment i.e., Flutter Entertainment and DAX Index go up and down completely randomly.
Pair Corralation between Flutter Entertainment and DAX Index
Assuming the 90 days trading horizon Flutter Entertainment is expected to generate 1.1 times less return on investment than DAX Index. In addition to that, Flutter Entertainment is 3.34 times more volatile than DAX Index. It trades about 0.12 of its total potential returns per unit of risk. DAX Index is currently generating about 0.45 per unit of volatility. If you would invest 1,926,370 in DAX Index on September 15, 2024 and sell it today you would earn a total of 114,222 from holding DAX Index or generate 5.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Flutter Entertainment PLC vs. DAX Index
Performance |
| Timeline |
Flutter Entertainment and DAX Index Volatility Contrast
Predicted Return Density |
| Returns |
Flutter Entertainment PLC
Pair trading matchups for Flutter Entertainment
DAX Index
Pair trading matchups for DAX Index
Pair Trading with Flutter Entertainment and DAX Index
The main advantage of trading using opposite Flutter Entertainment and DAX Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flutter Entertainment position performs unexpectedly, DAX Index 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 DAX Index will offset losses from the drop in DAX Index's long position.| Flutter Entertainment vs. Apple Inc | Flutter Entertainment vs. Apple Inc | Flutter Entertainment vs. Apple Inc | Flutter Entertainment vs. Apple Inc |
| DAX Index vs. Flutter Entertainment PLC | DAX Index vs. LG Display Co | DAX Index vs. TOWNSQUARE MEDIA INC | DAX Index vs. Prosiebensat 1 Media |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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