Correlation Between Flutter Entertainment and Everyman Media

Can any of the company-specific risk be diversified away by investing in both Flutter Entertainment and Everyman Media 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 Everyman Media 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 Everyman Media Group, you can compare the effects of market volatilities on Flutter Entertainment and Everyman Media 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 Everyman Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flutter Entertainment and Everyman Media.

Diversification Opportunities for Flutter Entertainment and Everyman Media

-0.45

Correlation Coefficient

Flutter Entertainment  Everyman Media

Very good diversification

The 3 months correlation between Flutter and Everyman is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Flutter Entertainment PLC and Everyman Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Everyman Media Group 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 Everyman Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Everyman Media Group has no effect on the direction of Flutter Entertainment i.e., Flutter Entertainment and Everyman Media go up and down completely randomly.

Pair Corralation between Flutter Entertainment and Everyman Media

Assuming the 90 days trading horizon Flutter Entertainment PLC is expected to generate 1.14 times more return on investment than Everyman Media. However, Flutter Entertainment is 1.14 times more volatile than Everyman Media Group. It trades about 0.06 of its potential returns per unit of risk. Everyman Media Group is currently generating about -0.07 per unit of risk. If you would invest  1,328,000  in Flutter Entertainment PLC on October 25, 2024 and sell it today you would earn a total of  855,000  from holding Flutter Entertainment PLC or generate 64.38% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Flutter Entertainment PLC  vs.  Everyman Media Group

Flutter Entertainment PLC

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Flutter Entertainment PLC are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Flutter Entertainment unveiled solid returns over the last few months and may actually be approaching a breakup point.

Everyman Media Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Everyman Media Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Flutter Entertainment and Everyman Media

The main advantage of trading using opposite Flutter Entertainment and Everyman Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flutter Entertainment position performs unexpectedly, Everyman Media 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 Everyman Media will offset losses from the drop in Everyman Media's long position.

The idea behind Flutter Entertainment PLC and Everyman Media Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.