Correlation Between Flutter Entertainment and FIREWEED METALS
Can any of the company-specific risk be diversified away by investing in both Flutter Entertainment and FIREWEED METALS 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 FIREWEED METALS 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 FIREWEED METALS P, you can compare the effects of market volatilities on Flutter Entertainment and FIREWEED METALS 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 FIREWEED METALS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flutter Entertainment and FIREWEED METALS.
Diversification Opportunities for Flutter Entertainment and FIREWEED METALS
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Flutter and FIREWEED is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Flutter Entertainment PLC and FIREWEED METALS P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FIREWEED METALS P 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 FIREWEED METALS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FIREWEED METALS P has no effect on the direction of Flutter Entertainment i.e., Flutter Entertainment and FIREWEED METALS go up and down completely randomly.
Pair Corralation between Flutter Entertainment and FIREWEED METALS
Assuming the 90 days trading horizon Flutter Entertainment PLC is expected to generate 0.69 times more return on investment than FIREWEED METALS. However, Flutter Entertainment PLC is 1.44 times less risky than FIREWEED METALS. It trades about 0.07 of its potential returns per unit of risk. FIREWEED METALS P is currently generating about 0.04 per unit of risk. If you would invest 17,945 in Flutter Entertainment PLC on October 20, 2024 and sell it today you would earn a total of 6,815 from holding Flutter Entertainment PLC or generate 37.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Flutter Entertainment PLC vs. FIREWEED METALS P
Performance |
| Timeline |
| Flutter Entertainment PLC |
| FIREWEED METALS P |
Flutter Entertainment and FIREWEED METALS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flutter Entertainment and FIREWEED METALS
The main advantage of trading using opposite Flutter Entertainment and FIREWEED METALS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flutter Entertainment position performs unexpectedly, FIREWEED METALS 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 FIREWEED METALS will offset losses from the drop in FIREWEED METALS's long position.| Flutter Entertainment vs. Endeavour Mining PLC | Flutter Entertainment vs. SIEM OFFSHORE NEW | Flutter Entertainment vs. United Breweries Co | Flutter Entertainment vs. EIDESVIK OFFSHORE NK |
| FIREWEED METALS vs. GAMESTOP | FIREWEED METALS vs. Ubisoft Entertainment SA | FIREWEED METALS vs. SQUIRREL MEDIA SA | FIREWEED METALS vs. Flutter Entertainment PLC |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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