Correlation Between Fidus Investment and Flutter Entertainment
Can any of the company-specific risk be diversified away by investing in both Fidus Investment 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 Fidus Investment and Flutter Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidus Investment Corp and Flutter Entertainment plc, you can compare the effects of market volatilities on Fidus Investment 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 Fidus Investment with a short position of Flutter Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidus Investment and Flutter Entertainment.
Diversification Opportunities for Fidus Investment and Flutter Entertainment
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fidus and Flutter is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Fidus Investment Corp 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 Fidus Investment 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 Fidus Investment Corp 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 Fidus Investment i.e., Fidus Investment and Flutter Entertainment go up and down completely randomly.
Pair Corralation between Fidus Investment and Flutter Entertainment
Given the investment horizon of 90 days Fidus Investment is expected to generate 2.88 times less return on investment than Flutter Entertainment. But when comparing it to its historical volatility, Fidus Investment Corp is 3.24 times less risky than Flutter Entertainment. It trades about 0.19 of its potential returns per unit of risk. Flutter Entertainment plc is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 22,147 in Flutter Entertainment plc on September 13, 2024 and sell it today you would earn a total of 5,600 from holding Flutter Entertainment plc or generate 25.29% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Fidus Investment Corp vs. Flutter Entertainment plc
Performance |
Timeline |
Fidus Investment Corp |
Flutter Entertainment plc |
Fidus Investment and Flutter Entertainment Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Fidus Investment and Flutter Entertainment
The main advantage of trading using opposite Fidus Investment and Flutter Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidus Investment 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.Fidus Investment vs. Visa Class A | Fidus Investment vs. Diamond Hill Investment | Fidus Investment vs. Distoken Acquisition | Fidus Investment vs. AllianceBernstein Holding LP |
Flutter Entertainment vs. Pentair PLC | Flutter Entertainment vs. Grupo Aeroportuario del | Flutter Entertainment vs. Jutal Offshore Oil | Flutter Entertainment vs. FitLife Brands, Common |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |