Correlation Between Flutter Entertainment and Perseus Mining
Can any of the company-specific risk be diversified away by investing in both Flutter Entertainment and Perseus Mining 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 Perseus Mining 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 Perseus Mining Limited, you can compare the effects of market volatilities on Flutter Entertainment and Perseus Mining 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 Perseus Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flutter Entertainment and Perseus Mining.
Diversification Opportunities for Flutter Entertainment and Perseus Mining
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Flutter and Perseus is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Flutter Entertainment PLC and Perseus Mining Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perseus Mining 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 Perseus Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Perseus Mining has no effect on the direction of Flutter Entertainment i.e., Flutter Entertainment and Perseus Mining go up and down completely randomly.
Pair Corralation between Flutter Entertainment and Perseus Mining
Assuming the 90 days trading horizon Flutter Entertainment PLC is expected to generate 1.09 times more return on investment than Perseus Mining. However, Flutter Entertainment is 1.09 times more volatile than Perseus Mining Limited. It trades about 0.55 of its potential returns per unit of risk. Perseus Mining Limited is currently generating about -0.12 per unit of risk. If you would invest 20,520 in Flutter Entertainment PLC on August 28, 2024 and sell it today you would earn a total of 5,610 from holding Flutter Entertainment PLC or generate 27.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Flutter Entertainment PLC vs. Perseus Mining Limited
Performance |
| Timeline |
| Flutter Entertainment PLC |
| Perseus Mining |
Flutter Entertainment and Perseus Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flutter Entertainment and Perseus Mining
The main advantage of trading using opposite Flutter Entertainment and Perseus Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flutter Entertainment position performs unexpectedly, Perseus Mining 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 Perseus Mining will offset losses from the drop in Perseus Mining's long position.| Flutter Entertainment vs. Casio Computer CoLtd | Flutter Entertainment vs. FANDIFI TECHNOLOGY P | Flutter Entertainment vs. MACOM Technology Solutions | Flutter Entertainment vs. X FAB Silicon Foundries |
| Perseus Mining vs. HEALTHCARE REAL A | Perseus Mining vs. GUARDANT HEALTH CL | Perseus Mining vs. AUST AGRICULTURAL | Perseus Mining vs. Bumrungrad Hospital Public |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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