Correlation Between Supermarket Income and Flutter Entertainment
Can any of the company-specific risk be diversified away by investing in both Supermarket Income 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 Supermarket Income and Flutter Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Supermarket Income REIT and Flutter Entertainment PLC, you can compare the effects of market volatilities on Supermarket Income 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 Supermarket Income with a short position of Flutter Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Supermarket Income and Flutter Entertainment.
Diversification Opportunities for Supermarket Income and Flutter Entertainment
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Supermarket and Flutter is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Supermarket Income REIT 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 Supermarket Income 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 Supermarket Income REIT 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 Supermarket Income i.e., Supermarket Income and Flutter Entertainment go up and down completely randomly.
Pair Corralation between Supermarket Income and Flutter Entertainment
Assuming the 90 days trading horizon Supermarket Income REIT is expected to generate 1.07 times more return on investment than Flutter Entertainment. However, Supermarket Income is 1.07 times more volatile than Flutter Entertainment PLC. It trades about 0.03 of its potential returns per unit of risk. Flutter Entertainment PLC is currently generating about 0.03 per unit of risk. If you would invest 6,704 in Supermarket Income REIT on November 7, 2024 and sell it today you would earn a total of 46.00 from holding Supermarket Income REIT or generate 0.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Supermarket Income REIT vs. Flutter Entertainment PLC
Performance |
| Timeline |
| Supermarket Income REIT |
| Flutter Entertainment PLC |
Supermarket Income and Flutter Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Supermarket Income and Flutter Entertainment
The main advantage of trading using opposite Supermarket Income and Flutter Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Supermarket Income 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.| Supermarket Income vs. CVS Health Corp | Supermarket Income vs. CleanTech Lithium plc | Supermarket Income vs. Sartorius Stedim Biotech | Supermarket Income vs. Universal Health Services |
| Flutter Entertainment vs. Tatton Asset Management | Flutter Entertainment vs. Universal Music Group | Flutter Entertainment vs. Fresenius Medical Care | Flutter Entertainment vs. Southwest Airlines 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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