Correlation Between Flutter Entertainment and EJF Investments

Can any of the company-specific risk be diversified away by investing in both Flutter Entertainment and EJF Investments 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 EJF Investments 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 EJF Investments, you can compare the effects of market volatilities on Flutter Entertainment and EJF Investments 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 EJF Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flutter Entertainment and EJF Investments.

Diversification Opportunities for Flutter Entertainment and EJF Investments

0.92

Correlation Coefficient

Flutter Entertainment  EJF Investments

Almost no diversification

The 3 months correlation between Flutter and EJF is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Flutter Entertainment PLC and EJF Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EJF Investments 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 EJF Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EJF Investments has no effect on the direction of Flutter Entertainment i.e., Flutter Entertainment and EJF Investments go up and down completely randomly.

Pair Corralation between Flutter Entertainment and EJF Investments

Assuming the 90 days trading horizon Flutter Entertainment PLC is expected to generate 1.44 times more return on investment than EJF Investments. However, Flutter Entertainment is 1.44 times more volatile than EJF Investments. It trades about 0.08 of its potential returns per unit of risk. EJF Investments is currently generating about 0.09 per unit of risk. If you would invest  1,535,000  in Flutter Entertainment PLC on April 22, 2025 and sell it today you would earn a total of  747,000  from holding Flutter Entertainment PLC or generate 48.66% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Flutter Entertainment PLC  vs.  EJF Investments

Flutter Entertainment PLC

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Flutter Entertainment PLC are ranked lower than 23 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Flutter Entertainment unveiled solid returns over the last few months and may actually be approaching a breakup point.

EJF Investments

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in EJF Investments are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, EJF Investments is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Flutter Entertainment and EJF Investments

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

The idea behind Flutter Entertainment PLC and EJF Investments 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.

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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.