Correlation Between Flutter Entertainment and DraftKings

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

Diversification Opportunities for Flutter Entertainment and DraftKings

0.94

Correlation Coefficient

Flutter Entertainment  DraftKings

Almost no diversification

The 3 months correlation between Flutter and DraftKings is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Flutter Entertainment plc and DraftKings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DraftKings 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 DraftKings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DraftKings has no effect on the direction of Flutter Entertainment i.e., Flutter Entertainment and DraftKings go up and down completely randomly.

Pair Corralation between Flutter Entertainment and DraftKings

Given the investment horizon of 90 days Flutter Entertainment is expected to generate 1.02 times less return on investment than DraftKings. But when comparing it to its historical volatility, Flutter Entertainment plc is 1.24 times less risky than DraftKings. It trades about 0.11 of its potential returns per unit of risk. DraftKings is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  3,793  in DraftKings on May 12, 2025 and sell it today you would earn a total of  495.00  from holding DraftKings or generate 13.05% 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.  DraftKings

Flutter Entertainment plc

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Flutter Entertainment plc are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, Flutter Entertainment unveiled solid returns over the last few months and may actually be approaching a breakup point.

DraftKings

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in DraftKings are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly unfluctuating basic indicators, DraftKings reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Flutter Entertainment and DraftKings

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

The idea behind Flutter Entertainment plc and DraftKings 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.