Correlation Between Samsung Electronics and Flutter Entertainment
Can any of the company-specific risk be diversified away by investing in both Samsung Electronics and Flutter Entertainment 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 Samsung Electronics and Flutter Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samsung Electronics Co and Flutter Entertainment PLC, you can compare the effects of market volatilities on Samsung Electronics and Flutter Entertainment 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 Samsung Electronics with a short position of Flutter Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samsung Electronics and Flutter Entertainment.
Diversification Opportunities for Samsung Electronics and Flutter Entertainment
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Samsung and Flutter is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Samsung Electronics Co and Flutter Entertainment PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flutter Entertainment PLC and Samsung Electronics 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 Samsung Electronics Co are associated (or correlated) with Flutter Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flutter Entertainment PLC has no effect on the direction of Samsung Electronics i.e., Samsung Electronics and Flutter Entertainment go up and down completely randomly.
Pair Corralation between Samsung Electronics and Flutter Entertainment
Assuming the 90 days trading horizon Samsung Electronics Co is expected to under-perform the Flutter Entertainment. But the stock apears to be less risky and, when comparing its historical volatility, Samsung Electronics Co is 1.27 times less risky than Flutter Entertainment. The stock trades about -0.05 of its potential returns per unit of risk. The Flutter Entertainment PLC is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,542,000 in Flutter Entertainment PLC on September 12, 2024 and sell it today you would earn a total of 623,000 from holding Flutter Entertainment PLC or generate 40.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samsung Electronics Co vs. Flutter Entertainment PLC
Performance |
| Timeline |
| Samsung Electronics |
| Flutter Entertainment PLC |
Samsung Electronics and Flutter Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samsung Electronics and Flutter Entertainment
The main advantage of trading using opposite Samsung Electronics and Flutter Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samsung Electronics position performs unexpectedly, Flutter Entertainment 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 Flutter Entertainment will offset losses from the drop in Flutter Entertainment's long position.| Samsung Electronics vs. Norwegian Air Shuttle | Samsung Electronics vs. GreenX Metals | Samsung Electronics vs. AMG Advanced Metallurgical | Samsung Electronics vs. Gaztransport et Technigaz |
| Flutter Entertainment vs. National Atomic Co | Flutter Entertainment vs. OTP Bank Nyrt | Flutter Entertainment vs. Samsung Electronics Co | Flutter Entertainment vs. Samsung Electronics Co |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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