Correlation Between Flutter Entertainment and Canterbury Park

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

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

Diversification Opportunities for Flutter Entertainment and Canterbury Park

0.0

Correlation Coefficient

Flutter Entertainment  Canterbury Park

Pay attention - limited upside

The 3 months correlation between Flutter and Canterbury is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Flutter Entertainment Plc and Canterbury Park Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canterbury Park Holding and Flutter Entertainment 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 Flutter Entertainment Plc are associated (or correlated) with Canterbury Park. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canterbury Park Holding has no effect on the direction of Flutter Entertainment i.e., Flutter Entertainment and Canterbury Park go up and down completely randomly.

Pair Corralation between Flutter Entertainment and Canterbury Park

Assuming the 90 days horizon Flutter Entertainment is expected to generate 15.09 times less return on investment than Canterbury Park. But when comparing it to its historical volatility, Flutter Entertainment Plc is 30.8 times less risky than Canterbury Park. It trades about 0.12 of its potential returns per unit of risk. Canterbury Park Holding is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  2,537  in Canterbury Park Holding on October 1, 2024 and sell it today you would lose (347.00) from holding Canterbury Park Holding or give up 13.68% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	24.2%
Values	Daily Returns

Flutter Entertainment Plc  vs.  Canterbury Park Holding

Flutter Entertainment Plc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Flutter Entertainment Plc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Flutter Entertainment is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Canterbury Park Holding

Risk-Adjusted Performance

7 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Canterbury Park Holding are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak technical indicators, Canterbury Park exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Flutter Entertainment and Canterbury Park

The main advantage of trading using opposite Flutter Entertainment and Canterbury Park positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flutter Entertainment position performs unexpectedly, Canterbury Park 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 Canterbury Park will offset losses from the drop in Canterbury Park's long position.

The idea behind Flutter Entertainment Plc and Canterbury Park Holding 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.

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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.