Correlation Between Flutter Entertainment and SIMON

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

Diversification Opportunities for Flutter Entertainment and SIMON

0.08

Correlation Coefficient

Flutter Entertainment  SIMON

Significant diversification

The 3 months correlation between Flutter and SIMON is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Flutter Entertainment plc and SIMON PPTY GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SIMON PPTY GROUP 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 SIMON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SIMON PPTY GROUP has no effect on the direction of Flutter Entertainment i.e., Flutter Entertainment and SIMON go up and down completely randomly.

Pair Corralation between Flutter Entertainment and SIMON

Given the investment horizon of 90 days Flutter Entertainment plc is expected to generate 0.41 times more return on investment than SIMON. However, Flutter Entertainment plc is 2.41 times less risky than SIMON. It trades about 0.18 of its potential returns per unit of risk. SIMON PPTY GROUP is currently generating about 0.07 per unit of risk. If you would invest  23,817  in Flutter Entertainment plc on May 22, 2025 and sell it today you would earn a total of  5,259  from holding Flutter Entertainment plc or generate 22.08% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	67.21%
Values	Daily Returns

Flutter Entertainment plc  vs.  SIMON PPTY GROUP

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.

SIMON PPTY GROUP

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in SIMON PPTY GROUP are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat abnormal basic indicators, SIMON sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Flutter Entertainment and SIMON

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

The idea behind Flutter Entertainment plc and SIMON PPTY GROUP 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..