Correlation Between Old Dominion and Flutter Entertainment
Can any of the company-specific risk be diversified away by investing in both Old Dominion 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 Old Dominion and Flutter Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Old Dominion Freight and Flutter Entertainment plc, you can compare the effects of market volatilities on Old Dominion 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 Old Dominion with a short position of Flutter Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Old Dominion and Flutter Entertainment.
Diversification Opportunities for Old Dominion and Flutter Entertainment
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Old and Flutter is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Old Dominion Freight 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 Old Dominion 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 Old Dominion Freight 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 Old Dominion i.e., Old Dominion and Flutter Entertainment go up and down completely randomly.
Pair Corralation between Old Dominion and Flutter Entertainment
Given the investment horizon of 90 days Old Dominion Freight is expected to generate 1.25 times more return on investment than Flutter Entertainment. However, Old Dominion is 1.25 times more volatile than Flutter Entertainment plc. It trades about 0.06 of its potential returns per unit of risk. Flutter Entertainment plc is currently generating about 0.03 per unit of risk. If you would invest 14,646 in Old Dominion Freight on May 31, 2025 and sell it today you would earn a total of 450.00 from holding Old Dominion Freight or generate 3.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Old Dominion Freight vs. Flutter Entertainment plc
Performance |
| Timeline |
| Old Dominion Freight |
| Flutter Entertainment plc |
Old Dominion and Flutter Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Old Dominion and Flutter Entertainment
The main advantage of trading using opposite Old Dominion and Flutter Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Old Dominion 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.| Old Dominion vs. ArcBest Corp | Old Dominion vs. Marten Transport | Old Dominion vs. Werner Enterprises | Old Dominion vs. Knight Transportation |
| Flutter Entertainment vs. Sachem Capital Corp | Flutter Entertainment vs. Alignment Healthcare LLC | Flutter Entertainment vs. MGIC Investment Corp | Flutter Entertainment vs. Western Asset Investment |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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