Correlation Between Flutter Entertainment and Eidesvik Offshore
Can any of the company-specific risk be diversified away by investing in both Flutter Entertainment and Eidesvik Offshore 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 Eidesvik Offshore 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 Eidesvik Offshore ASA, you can compare the effects of market volatilities on Flutter Entertainment and Eidesvik Offshore 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 Eidesvik Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flutter Entertainment and Eidesvik Offshore.
Diversification Opportunities for Flutter Entertainment and Eidesvik Offshore
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Flutter and Eidesvik is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Flutter Entertainment PLC and Eidesvik Offshore ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eidesvik Offshore ASA 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 Eidesvik Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eidesvik Offshore ASA has no effect on the direction of Flutter Entertainment i.e., Flutter Entertainment and Eidesvik Offshore go up and down completely randomly.
Pair Corralation between Flutter Entertainment and Eidesvik Offshore
Assuming the 90 days horizon Flutter Entertainment PLC is expected to generate 0.99 times more return on investment than Eidesvik Offshore. However, Flutter Entertainment PLC is 1.01 times less risky than Eidesvik Offshore. It trades about 0.24 of its potential returns per unit of risk. Eidesvik Offshore ASA is currently generating about 0.09 per unit of risk. If you would invest 18,985 in Flutter Entertainment PLC on April 21, 2025 and sell it today you would earn a total of 7,125 from holding Flutter Entertainment PLC or generate 37.53% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Flutter Entertainment PLC vs. Eidesvik Offshore ASA
Performance |
Timeline |
Flutter Entertainment PLC |
Eidesvik Offshore ASA |
Flutter Entertainment and Eidesvik Offshore Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Flutter Entertainment and Eidesvik Offshore
The main advantage of trading using opposite Flutter Entertainment and Eidesvik Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flutter Entertainment position performs unexpectedly, Eidesvik Offshore 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 Eidesvik Offshore will offset losses from the drop in Eidesvik Offshore's long position.Flutter Entertainment vs. Keck Seng Investments | Flutter Entertainment vs. HK Electric Investments | Flutter Entertainment vs. Odyssean Investment Trust | Flutter Entertainment vs. CHRYSALIS INVESTMENTS LTD |
Eidesvik Offshore vs. Hana Microelectronics PCL | Eidesvik Offshore vs. Charter Communications | Eidesvik Offshore vs. LG Electronics | Eidesvik Offshore vs. Benchmark Electronics |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
Content Syndication Quickly integrate customizable finance content to your own investment portal | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data |