Correlation Between Flutter Entertainment and Caesars Entertainment

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

Diversification Opportunities for Flutter Entertainment and Caesars Entertainment

0.52

Correlation Coefficient

Flutter Entertainment  Caesars Entertainment

Very weak diversification

The 3 months correlation between Flutter and Caesars is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Flutter Entertainment plc and Caesars Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caesars Entertainment 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 Caesars Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caesars Entertainment has no effect on the direction of Flutter Entertainment i.e., Flutter Entertainment and Caesars Entertainment go up and down completely randomly.

Pair Corralation between Flutter Entertainment and Caesars Entertainment

Given the investment horizon of 90 days Flutter Entertainment plc is expected to generate 0.69 times more return on investment than Caesars Entertainment. However, Flutter Entertainment plc is 1.45 times less risky than Caesars Entertainment. It trades about 0.07 of its potential returns per unit of risk. Caesars Entertainment is currently generating about 0.01 per unit of risk. If you would invest  23,942  in Flutter Entertainment plc on March 16, 2025 and sell it today you would earn a total of  2,519  from holding Flutter Entertainment plc or generate 10.52% return on investment over 90 days.

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

Flutter Entertainment plc  vs.  Caesars Entertainment

Flutter Entertainment plc

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Flutter Entertainment plc are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating basic indicators, Flutter Entertainment may actually be approaching a critical reversion point that can send shares even higher in July 2025.

Caesars Entertainment

Risk-Adjusted Performance

Very Weak

Over the last 90 days Caesars Entertainment has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Caesars Entertainment is not utilizing all of its potentials. The newest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Flutter Entertainment and Caesars Entertainment

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

The idea behind Flutter Entertainment plc and Caesars Entertainment 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.