Correlation Between Flutter Entertainment and SEB SA
Can any of the company-specific risk be diversified away by investing in both Flutter Entertainment and SEB SA 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 SEB SA 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 SEB SA, you can compare the effects of market volatilities on Flutter Entertainment and SEB SA 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 SEB SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flutter Entertainment and SEB SA.
Diversification Opportunities for Flutter Entertainment and SEB SA
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Flutter and SEB is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Flutter Entertainment PLC and SEB SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEB SA 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 SEB SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEB SA has no effect on the direction of Flutter Entertainment i.e., Flutter Entertainment and SEB SA go up and down completely randomly.
Pair Corralation between Flutter Entertainment and SEB SA
Assuming the 90 days trading horizon Flutter Entertainment PLC is expected to generate 0.99 times more return on investment than SEB SA. However, Flutter Entertainment PLC is 1.01 times less risky than SEB SA. It trades about 0.07 of its potential returns per unit of risk. SEB SA is currently generating about -0.11 per unit of risk. If you would invest 25,740 in Flutter Entertainment PLC on December 4, 2024 and sell it today you would earn a total of 830.00 from holding Flutter Entertainment PLC or generate 3.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Flutter Entertainment PLC vs. SEB SA
Performance |
| Timeline |
| Flutter Entertainment PLC |
| SEB SA |
Flutter Entertainment and SEB SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flutter Entertainment and SEB SA
The main advantage of trading using opposite Flutter Entertainment and SEB SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flutter Entertainment position performs unexpectedly, SEB SA 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 SEB SA will offset losses from the drop in SEB SA's long position.| Flutter Entertainment vs. SINGAPORE AIRLINES | Flutter Entertainment vs. SOUTHWEST AIRLINES | Flutter Entertainment vs. COPLAND ROAD CAPITAL | Flutter Entertainment vs. International Consolidated Airlines |
| SEB SA vs. International Consolidated Airlines | SEB SA vs. AUTO TRADER ADR | SEB SA vs. H2O Retailing | SEB SA vs. Tradeweb Markets |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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