Correlation Between Flutter Entertainment and Ultra Clean
Can any of the company-specific risk be diversified away by investing in both Flutter Entertainment and Ultra Clean 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 Ultra Clean 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 Ultra Clean Holdings, you can compare the effects of market volatilities on Flutter Entertainment and Ultra Clean 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 Ultra Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flutter Entertainment and Ultra Clean.
Diversification Opportunities for Flutter Entertainment and Ultra Clean
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Flutter and Ultra is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Flutter Entertainment PLC and Ultra Clean Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ultra Clean Holdings 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 Ultra Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ultra Clean Holdings has no effect on the direction of Flutter Entertainment i.e., Flutter Entertainment and Ultra Clean go up and down completely randomly.
Pair Corralation between Flutter Entertainment and Ultra Clean
Assuming the 90 days trading horizon Flutter Entertainment PLC is expected to generate 0.63 times more return on investment than Ultra Clean. However, Flutter Entertainment PLC is 1.58 times less risky than Ultra Clean. It trades about 0.03 of its potential returns per unit of risk. Ultra Clean Holdings is currently generating about -0.13 per unit of risk. If you would invest 24,700 in Flutter Entertainment PLC on November 7, 2024 and sell it today you would earn a total of 190.00 from holding Flutter Entertainment PLC or generate 0.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Flutter Entertainment PLC vs. Ultra Clean Holdings
Performance |
| Timeline |
| Flutter Entertainment PLC |
| Ultra Clean Holdings |
Flutter Entertainment and Ultra Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flutter Entertainment and Ultra Clean
The main advantage of trading using opposite Flutter Entertainment and Ultra Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flutter Entertainment position performs unexpectedly, Ultra Clean 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 Ultra Clean will offset losses from the drop in Ultra Clean's long position.| Flutter Entertainment vs. SIVERS SEMICONDUCTORS AB | Flutter Entertainment vs. NorAm Drilling AS | Flutter Entertainment vs. Volkswagen AG | Flutter Entertainment vs. Darden Restaurants |
| Ultra Clean vs. GLG LIFE TECH | Ultra Clean vs. British American Tobacco | Ultra Clean vs. Insurance Australia Group | Ultra Clean vs. IMPERIAL TOBACCO |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Global Correlations Find global opportunities by holding instruments from different markets |