Correlation Between Flutter Entertainment and Gan

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

Diversification Opportunities for Flutter Entertainment and Gan

0.34

Correlation Coefficient

Flutter Entertainment  Gan

Weak diversification

The 3 months correlation between Flutter and Gan is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Flutter Entertainment Plc and Gan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gan 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 Gan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gan has no effect on the direction of Flutter Entertainment i.e., Flutter Entertainment and Gan go up and down completely randomly.

Pair Corralation between Flutter Entertainment and Gan

If you would invest  178.00  in Gan on September 21, 2024 and sell it today you would earn a total of  4.50  from holding Gan or generate 2.53% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	1.56%
Values	Daily Returns

Flutter Entertainment Plc  vs.  Gan

Flutter Entertainment Plc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Flutter Entertainment Plc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Flutter Entertainment is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Gan

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Gan are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Gan is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Flutter Entertainment and Gan

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

The idea behind Flutter Entertainment Plc and Gan 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.

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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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.