Correlation Between Burlington Stores and Flutter Entertainment

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

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

Diversification Opportunities for Burlington Stores and Flutter Entertainment

-0.27

Correlation Coefficient

Burlington Stores  Flutter Entertainment

Very good diversification

The 3 months correlation between Burlington and Flutter is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Burlington Stores 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 Burlington Stores 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 Burlington Stores 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 Burlington Stores i.e., Burlington Stores and Flutter Entertainment go up and down completely randomly.

Pair Corralation between Burlington Stores and Flutter Entertainment

Assuming the 90 days trading horizon Burlington Stores is expected to under-perform the Flutter Entertainment. In addition to that, Burlington Stores is 1.96 times more volatile than Flutter Entertainment PLC. It trades about -0.03 of its total potential returns per unit of risk. Flutter Entertainment PLC is currently generating about 0.23 per unit of volatility. If you would invest  16,840  in Flutter Entertainment PLC on September 16, 2025 and sell it today you would earn a total of  1,675  from holding Flutter Entertainment PLC or generate 9.95% return on investment over 90 days.

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

Burlington Stores  vs.  Flutter Entertainment PLC

Burlington Stores

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Burlington Stores are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Burlington Stores is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Flutter Entertainment PLC

Risk-Adjusted Performance

Weakest

Over the last 90 days Flutter Entertainment PLC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in January 2026. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Burlington Stores and Flutter Entertainment

The main advantage of trading using opposite Burlington Stores and Flutter Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Burlington Stores 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.

The idea behind Burlington Stores and Flutter Entertainment PLC 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.