Correlation Between US Global and Flutter Entertainment

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

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

Diversification Opportunities for US Global and Flutter Entertainment

0.84

Correlation Coefficient

US Global  Flutter Entertainment

Very poor diversification

The 3 months correlation between GROW and Flutter is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding US Global Investors 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 US Global 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 US Global Investors 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 US Global i.e., US Global and Flutter Entertainment go up and down completely randomly.

Pair Corralation between US Global and Flutter Entertainment

Given the investment horizon of 90 days US Global is expected to generate 1.5 times less return on investment than Flutter Entertainment. But when comparing it to its historical volatility, US Global Investors is 1.18 times less risky than Flutter Entertainment. It trades about 0.14 of its potential returns per unit of risk. Flutter Entertainment plc is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  24,868  in Flutter Entertainment plc on May 2, 2025 and sell it today you would earn a total of  5,358  from holding Flutter Entertainment plc or generate 21.55% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

US Global Investors  vs.  Flutter Entertainment plc

US Global Investors

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in US Global Investors are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, US Global showed solid returns over the last few months and may actually be approaching a breakup point.

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.

Pair Trading with US Global and Flutter Entertainment

The main advantage of trading using opposite US Global and Flutter Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if US Global 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 US Global Investors 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.