Correlation Between Flutter Entertainment and Sixt Leasing
Can any of the company-specific risk be diversified away by investing in both Flutter Entertainment and Sixt Leasing 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 Sixt Leasing 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 Sixt Leasing SE, you can compare the effects of market volatilities on Flutter Entertainment and Sixt Leasing 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 Sixt Leasing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flutter Entertainment and Sixt Leasing.
Diversification Opportunities for Flutter Entertainment and Sixt Leasing
-0.89 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Flutter and Sixt is -0.89. Overlapping area represents the amount of risk that can be diversified away by holding Flutter Entertainment PLC and Sixt Leasing SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sixt Leasing SE 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 Sixt Leasing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sixt Leasing SE has no effect on the direction of Flutter Entertainment i.e., Flutter Entertainment and Sixt Leasing go up and down completely randomly.
Pair Corralation between Flutter Entertainment and Sixt Leasing
Assuming the 90 days trading horizon Flutter Entertainment PLC is expected to generate 1.15 times more return on investment than Sixt Leasing. However, Flutter Entertainment is 1.15 times more volatile than Sixt Leasing SE. It trades about 0.56 of its potential returns per unit of risk. Sixt Leasing SE is currently generating about -0.16 per unit of risk. If you would invest 20,520 in Flutter Entertainment PLC on August 29, 2024 and sell it today you would earn a total of 5,890 from holding Flutter Entertainment PLC or generate 28.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Flutter Entertainment PLC vs. Sixt Leasing SE
Performance |
| Timeline |
| Flutter Entertainment PLC |
| Sixt Leasing SE |
Flutter Entertainment and Sixt Leasing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flutter Entertainment and Sixt Leasing
The main advantage of trading using opposite Flutter Entertainment and Sixt Leasing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flutter Entertainment position performs unexpectedly, Sixt Leasing 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 Sixt Leasing will offset losses from the drop in Sixt Leasing's long position.| Flutter Entertainment vs. Apple Inc | Flutter Entertainment vs. Apple Inc | Flutter Entertainment vs. Apple Inc | Flutter Entertainment vs. Apple Inc |
| Sixt Leasing vs. Apple Inc | Sixt Leasing vs. Apple Inc | Sixt Leasing vs. Apple Inc | Sixt Leasing 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |