Correlation Between Flutter Entertainment and FUTURE GAMING

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

Diversification Opportunities for Flutter Entertainment and FUTURE GAMING

0.6

Correlation Coefficient

Flutter Entertainment  FUTURE GAMING

Poor diversification

The 3 months correlation between Flutter and FUTURE is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Flutter Entertainment PLC and FUTURE GAMING GRP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FUTURE GAMING GRP 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 FUTURE GAMING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FUTURE GAMING GRP has no effect on the direction of Flutter Entertainment i.e., Flutter Entertainment and FUTURE GAMING go up and down completely randomly.

Pair Corralation between Flutter Entertainment and FUTURE GAMING

Assuming the 90 days horizon Flutter Entertainment PLC is expected to generate 0.55 times more return on investment than FUTURE GAMING. However, Flutter Entertainment PLC is 1.8 times less risky than FUTURE GAMING. It trades about 0.24 of its potential returns per unit of risk. FUTURE GAMING GRP is currently generating about 0.04 per unit of risk. If you would invest  18,985  in Flutter Entertainment PLC on April 21, 2025 and sell it today you would earn a total of  7,125  from holding Flutter Entertainment PLC or generate 37.53% return on investment over 90 days.

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

Flutter Entertainment PLC  vs.  FUTURE GAMING GRP

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 18 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Flutter Entertainment reported solid returns over the last few months and may actually be approaching a breakup point.

FUTURE GAMING GRP

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in FUTURE GAMING GRP are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, FUTURE GAMING may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Flutter Entertainment and FUTURE GAMING

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

The idea behind Flutter Entertainment PLC and FUTURE GAMING GRP 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.