Correlation Between Chuangs China and Flutter Entertainment
Can any of the company-specific risk be diversified away by investing in both Chuangs China 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 Chuangs China and Flutter Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chuangs China Investments and Flutter Entertainment PLC, you can compare the effects of market volatilities on Chuangs China 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 Chuangs China with a short position of Flutter Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chuangs China and Flutter Entertainment.
Diversification Opportunities for Chuangs China and Flutter Entertainment
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Chuangs and Flutter is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Chuangs China Investments 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 Chuangs China 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 Chuangs China Investments 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 Chuangs China i.e., Chuangs China and Flutter Entertainment go up and down completely randomly.
Pair Corralation between Chuangs China and Flutter Entertainment
Assuming the 90 days horizon Chuangs China is expected to generate 1.06 times less return on investment than Flutter Entertainment. In addition to that, Chuangs China is 2.08 times more volatile than Flutter Entertainment PLC. It trades about 0.12 of its total potential returns per unit of risk. Flutter Entertainment PLC is currently generating about 0.26 per unit of volatility. If you would invest 19,850 in Flutter Entertainment PLC on April 23, 2025 and sell it today you would earn a total of 5,940 from holding Flutter Entertainment PLC or generate 29.92% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Chuangs China Investments vs. Flutter Entertainment PLC
Performance |
Timeline |
Chuangs China Investments |
Flutter Entertainment PLC |
Chuangs China and Flutter Entertainment Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Chuangs China and Flutter Entertainment
The main advantage of trading using opposite Chuangs China and Flutter Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chuangs China 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.Chuangs China vs. Live Nation Entertainment | Chuangs China vs. National Beverage Corp | Chuangs China vs. RCS MediaGroup SpA | Chuangs China vs. Astral Foods Limited |
Flutter Entertainment vs. Major Drilling Group | Flutter Entertainment vs. Retail Estates NV | Flutter Entertainment vs. PRECISION DRILLING P | Flutter Entertainment vs. MARKET VECTR RETAIL |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
Stocks Directory Find actively traded stocks across global markets | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |