Correlation Between Flutter Entertainment and Entain Plc

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

Diversification Opportunities for Flutter Entertainment and Entain Plc

0.0

Correlation Coefficient

Flutter Entertainment  Entain Plc

Pay attention - limited upside

The 3 months correlation between Flutter and Entain is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Flutter Entertainment plc and Entain Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Entain Plc 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 Entain Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Entain Plc has no effect on the direction of Flutter Entertainment i.e., Flutter Entertainment and Entain Plc go up and down completely randomly.

Pair Corralation between Flutter Entertainment and Entain Plc

If you would invest  24,901  in Flutter Entertainment plc on May 16, 2025 and sell it today you would earn a total of  3,976  from holding Flutter Entertainment plc or generate 15.97% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.61%
Values	Daily Returns

Flutter Entertainment plc  vs.  Entain Plc

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 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Flutter Entertainment unveiled solid returns over the last few months and may actually be approaching a breakup point.

Entain Plc

Risk-Adjusted Performance

Fair

Over the last 90 days Entain Plc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical indicators, Entain Plc 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 Entain Plc

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

The idea behind Flutter Entertainment plc and Entain 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.