Correlation Between Flutter Entertainment and Solarius Capital

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

Diversification Opportunities for Flutter Entertainment and Solarius Capital

-0.43

Correlation Coefficient

Flutter Entertainment  Solarius Capital

Very good diversification

The 3 months correlation between Flutter and Solarius is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Flutter Entertainment plc and Solarius Capital Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Solarius Capital Acq 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 Solarius Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Solarius Capital Acq has no effect on the direction of Flutter Entertainment i.e., Flutter Entertainment and Solarius Capital go up and down completely randomly.

Pair Corralation between Flutter Entertainment and Solarius Capital

Given the investment horizon of 90 days Flutter Entertainment plc is expected to generate 22.13 times more return on investment than Solarius Capital. However, Flutter Entertainment is 22.13 times more volatile than Solarius Capital Acquisition. It trades about 0.18 of its potential returns per unit of risk. Solarius Capital Acquisition is currently generating about 0.21 per unit of risk. If you would invest  24,522  in Flutter Entertainment plc on May 25, 2025 and sell it today you would earn a total of  5,420  from holding Flutter Entertainment plc or generate 22.1% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	45.16%
Values	Daily Returns

Flutter Entertainment plc  vs.  Solarius Capital Acquisition

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 14 (%) 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.

Solarius Capital Acq

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Solarius Capital Acquisition are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Solarius Capital is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Flutter Entertainment and Solarius Capital

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

The idea behind Flutter Entertainment plc and Solarius Capital Acquisition 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.