Correlation Between Shoe Carnival and Flutter Entertainment
Can any of the company-specific risk be diversified away by investing in both Shoe Carnival 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 Shoe Carnival and Flutter Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shoe Carnival and Flutter Entertainment plc, you can compare the effects of market volatilities on Shoe Carnival 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 Shoe Carnival with a short position of Flutter Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shoe Carnival and Flutter Entertainment.
Diversification Opportunities for Shoe Carnival and Flutter Entertainment
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shoe and Flutter is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Shoe Carnival 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 Shoe Carnival 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 Shoe Carnival 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 Shoe Carnival i.e., Shoe Carnival and Flutter Entertainment go up and down completely randomly.
Pair Corralation between Shoe Carnival and Flutter Entertainment
Given the investment horizon of 90 days Shoe Carnival is expected to under-perform the Flutter Entertainment. In addition to that, Shoe Carnival is 1.43 times more volatile than Flutter Entertainment plc. It trades about -0.06 of its total potential returns per unit of risk. Flutter Entertainment plc is currently generating about -0.03 per unit of volatility. If you would invest 30,625 in Flutter Entertainment plc on May 29, 2025 and sell it today you would lose (627.00) from holding Flutter Entertainment plc or give up 2.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shoe Carnival vs. Flutter Entertainment plc
Performance |
| Timeline |
| Shoe Carnival |
| Flutter Entertainment plc |
Shoe Carnival and Flutter Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shoe Carnival and Flutter Entertainment
The main advantage of trading using opposite Shoe Carnival and Flutter Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shoe Carnival 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.| Shoe Carnival vs. Genesco | Shoe Carnival vs. Citi Trends | Shoe Carnival vs. Buckle Inc | Shoe Carnival vs. Zumiez Inc |
| Flutter Entertainment vs. Costco Wholesale Corp | Flutter Entertainment vs. Walt Disney | Flutter Entertainment vs. Nike Inc | Flutter Entertainment vs. Visa Class A |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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