Correlation Between Denison Mines and Flutter Entertainment
Can any of the company-specific risk be diversified away by investing in both Denison Mines 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 Denison Mines and Flutter Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Denison Mines Corp and Flutter Entertainment plc, you can compare the effects of market volatilities on Denison Mines 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 Denison Mines with a short position of Flutter Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Denison Mines and Flutter Entertainment.
Diversification Opportunities for Denison Mines and Flutter Entertainment
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Denison and Flutter is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Denison Mines Corp 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 Denison Mines 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 Denison Mines Corp 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 Denison Mines i.e., Denison Mines and Flutter Entertainment go up and down completely randomly.
Pair Corralation between Denison Mines and Flutter Entertainment
Considering the 90-day investment horizon Denison Mines Corp is expected to generate 2.27 times more return on investment than Flutter Entertainment. However, Denison Mines is 2.27 times more volatile than Flutter Entertainment plc. It trades about 0.22 of its potential returns per unit of risk. Flutter Entertainment plc is currently generating about 0.29 per unit of risk. If you would invest 127.00 in Denison Mines Corp on April 18, 2025 and sell it today you would earn a total of 83.00 from holding Denison Mines Corp or generate 65.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Denison Mines Corp vs. Flutter Entertainment plc
Performance |
| Timeline |
| Denison Mines Corp |
| Flutter Entertainment plc |
Denison Mines and Flutter Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Denison Mines and Flutter Entertainment
The main advantage of trading using opposite Denison Mines and Flutter Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Denison Mines 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.| Denison Mines vs. Cameco Corp | Denison Mines vs. NexGen Energy | Denison Mines vs. Uranium Energy Corp | Denison Mines vs. Ur Energy |
| Flutter Entertainment vs. Bragg Gaming Group | Flutter Entertainment vs. Highwoods Properties | Flutter Entertainment vs. Hooker Furniture | Flutter Entertainment vs. Autohome |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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