Correlation Between First Citizens and Flutter Entertainment

Can any of the company-specific risk be diversified away by investing in both First Citizens and Flutter Entertainment 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 First Citizens and Flutter Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between The First Citizens and Flutter Entertainment plc, you can compare the effects of market volatilities on First Citizens and Flutter Entertainment 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 First Citizens with a short position of Flutter Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Citizens and Flutter Entertainment.

Diversification Opportunities for First Citizens and Flutter Entertainment

-0.59

Correlation Coefficient

First Citizens  Flutter Entertainment

Excellent diversification

The 3 months correlation between First and Flutter is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding The First Citizens and Flutter Entertainment plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flutter Entertainment plc and First Citizens 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 The First Citizens are associated (or correlated) with Flutter Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flutter Entertainment plc has no effect on the direction of First Citizens i.e., First Citizens and Flutter Entertainment go up and down completely randomly.

Pair Corralation between First Citizens and Flutter Entertainment

Given the investment horizon of 90 days The First Citizens is expected to under-perform the Flutter Entertainment. In addition to that, First Citizens is 8.73 times more volatile than Flutter Entertainment plc. It trades about -0.19 of its total potential returns per unit of risk. Flutter Entertainment plc is currently generating about 0.18 per unit of volatility. If you would invest  24,522  in Flutter Entertainment plc on May 26, 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	38.1%
Values	Daily Returns

The First Citizens  vs.  Flutter Entertainment plc

First Citizens

Risk-Adjusted Performance

Weakest

Over the last 90 days The First Citizens has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's fundamental indicators remain quite persistent which may send shares a bit higher in September 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

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 13 (%) 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.

Pair Trading with First Citizens and Flutter Entertainment

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

The idea behind The First Citizens and Flutter Entertainment 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.

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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.