Correlation Between Taylor Maritime and Flutter Entertainment

Can any of the company-specific risk be diversified away by investing in both Taylor Maritime 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 Taylor Maritime and Flutter Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Taylor Maritime Investments and Flutter Entertainment PLC, you can compare the effects of market volatilities on Taylor Maritime 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 Taylor Maritime with a short position of Flutter Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Taylor Maritime and Flutter Entertainment.

Diversification Opportunities for Taylor Maritime and Flutter Entertainment

0.75

Correlation Coefficient

Taylor Maritime  Flutter Entertainment

Poor diversification

The 3 months correlation between Taylor and Flutter is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Taylor Maritime 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 Taylor Maritime 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 Taylor Maritime 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 Taylor Maritime i.e., Taylor Maritime and Flutter Entertainment go up and down completely randomly.

Pair Corralation between Taylor Maritime and Flutter Entertainment

Assuming the 90 days trading horizon Taylor Maritime Investments is expected to generate 0.84 times more return on investment than Flutter Entertainment. However, Taylor Maritime Investments is 1.19 times less risky than Flutter Entertainment. It trades about 0.12 of its potential returns per unit of risk. Flutter Entertainment PLC is currently generating about 0.06 per unit of risk. If you would invest  5,749  in Taylor Maritime Investments on March 25, 2025 and sell it today you would earn a total of  831.00  from holding Taylor Maritime Investments or generate 14.45% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Taylor Maritime Investments  vs.  Flutter Entertainment PLC

Taylor Maritime Inve

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Taylor Maritime Investments are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Taylor Maritime unveiled solid returns over the last few months and may actually be approaching a breakup point.

Flutter Entertainment PLC

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Flutter Entertainment PLC are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Flutter Entertainment may actually be approaching a critical reversion point that can send shares even higher in July 2025.

Pair Trading with Taylor Maritime and Flutter Entertainment

The main advantage of trading using opposite Taylor Maritime and Flutter Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Taylor Maritime 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.

The idea behind Taylor Maritime Investments and Flutter Entertainment PLC 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.