Correlation Between Flutter Entertainment and International Game

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

Diversification Opportunities for Flutter Entertainment and International Game

-0.2

Correlation Coefficient

Flutter Entertainment  International Game

Good diversification

The 3 months correlation between Flutter and International is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Flutter Entertainment PLC and International Game Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Game 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 International Game. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Game has no effect on the direction of Flutter Entertainment i.e., Flutter Entertainment and International Game go up and down completely randomly.

Pair Corralation between Flutter Entertainment and International Game

Assuming the 90 days horizon Flutter Entertainment PLC is expected to generate 1.36 times more return on investment than International Game. However, Flutter Entertainment is 1.36 times more volatile than International Game Technology. It trades about 0.15 of its potential returns per unit of risk. International Game Technology is currently generating about 0.02 per unit of risk. If you would invest  18,120  in Flutter Entertainment PLC on April 6, 2025 and sell it today you would earn a total of  5,640  from holding Flutter Entertainment PLC or generate 31.13% return on investment over 90 days.

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

Flutter Entertainment PLC  vs.  International Game Technology

Flutter Entertainment PLC

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Flutter Entertainment PLC are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Flutter Entertainment reported solid returns over the last few months and may actually be approaching a breakup point.

International Game

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in International Game Technology are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, International Game is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Flutter Entertainment and International Game

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

The idea behind Flutter Entertainment PLC and International Game Technology 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.