Correlation Between Scientific Games and Flutter Entertainment
Can any of the company-specific risk be diversified away by investing in both Scientific Games 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 Scientific Games and Flutter Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Scientific Games and Flutter Entertainment PLC, you can compare the effects of market volatilities on Scientific Games 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 Scientific Games with a short position of Flutter Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scientific Games and Flutter Entertainment.
Diversification Opportunities for Scientific Games and Flutter Entertainment
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Scientific and Flutter is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Scientific Games 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 Scientific Games 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 Scientific Games 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 Scientific Games i.e., Scientific Games and Flutter Entertainment go up and down completely randomly.
Pair Corralation between Scientific Games and Flutter Entertainment
Assuming the 90 days horizon Scientific Games is expected to generate 3.14 times less return on investment than Flutter Entertainment. In addition to that, Scientific Games is 1.16 times more volatile than Flutter Entertainment PLC. It trades about 0.11 of its total potential returns per unit of risk. Flutter Entertainment PLC is currently generating about 0.41 per unit of volatility. If you would invest 21,030 in Flutter Entertainment PLC on September 4, 2024 and sell it today you would earn a total of 5,360 from holding Flutter Entertainment PLC or generate 25.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Scientific Games vs. Flutter Entertainment PLC
Performance |
| Timeline |
| Scientific Games |
| Flutter Entertainment PLC |
Scientific Games and Flutter Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scientific Games and Flutter Entertainment
The main advantage of trading using opposite Scientific Games and Flutter Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scientific Games 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.| Scientific Games vs. Apple Inc | Scientific Games vs. Apple Inc | Scientific Games vs. Apple Inc | Scientific Games vs. Apple Inc |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Stocks Directory Find actively traded stocks across global markets | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |