Correlation Between Global Net and Flutter Entertainment
Can any of the company-specific risk be diversified away by investing in both Global Net 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 Global Net and Flutter Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Net Lease and Flutter Entertainment plc, you can compare the effects of market volatilities on Global Net 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 Global Net with a short position of Flutter Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Net and Flutter Entertainment.
Diversification Opportunities for Global Net and Flutter Entertainment
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Global and Flutter is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Global Net Lease 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 Global Net 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 Global Net Lease 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 Global Net i.e., Global Net and Flutter Entertainment go up and down completely randomly.
Pair Corralation between Global Net and Flutter Entertainment
Assuming the 90 days trading horizon Global Net is expected to generate 4.25 times less return on investment than Flutter Entertainment. But when comparing it to its historical volatility, Global Net Lease is 2.21 times less risky than Flutter Entertainment. It trades about 0.13 of its potential returns per unit of risk. Flutter Entertainment plc is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 22,718 in Flutter Entertainment plc on April 16, 2025 and sell it today you would earn a total of 6,794 from holding Flutter Entertainment plc or generate 29.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global Net Lease vs. Flutter Entertainment plc
Performance |
| Timeline |
| Global Net Lease |
| Flutter Entertainment plc |
Global Net and Flutter Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Net and Flutter Entertainment
The main advantage of trading using opposite Global Net and Flutter Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Net 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.| Global Net vs. Molecular Partners AG | Global Net vs. Analog Devices | Global Net vs. Capital Clean Energy | Global Net vs. CleanTech Lithium Plc |
| Flutter Entertainment vs. Old Dominion Freight | Flutter Entertainment vs. The Joint Corp | Flutter Entertainment vs. MGIC Investment Corp | Flutter Entertainment vs. Sachem Capital Corp |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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