Correlation Between Flutter Entertainment and SunOpta

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

Diversification Opportunities for Flutter Entertainment and SunOpta

0.54

Correlation Coefficient

Flutter Entertainment  SunOpta

Very weak diversification

The 3 months correlation between Flutter and SunOpta is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Flutter Entertainment plc and SunOpta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SunOpta 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 SunOpta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SunOpta has no effect on the direction of Flutter Entertainment i.e., Flutter Entertainment and SunOpta go up and down completely randomly.

Pair Corralation between Flutter Entertainment and SunOpta

Given the investment horizon of 90 days Flutter Entertainment is expected to generate 1.69 times less return on investment than SunOpta. But when comparing it to its historical volatility, Flutter Entertainment plc is 2.49 times less risky than SunOpta. It trades about 0.19 of its potential returns per unit of risk. SunOpta is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  452.00  in SunOpta on May 2, 2025 and sell it today you would earn a total of  158.00  from holding SunOpta or generate 34.96% 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.  SunOpta

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 uncertain basic indicators, Flutter Entertainment unveiled solid returns over the last few months and may actually be approaching a breakup point.

SunOpta

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in SunOpta are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite quite weak forward-looking signals, SunOpta disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Flutter Entertainment and SunOpta

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

The idea behind Flutter Entertainment plc and SunOpta 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.