Correlation Between Hilton Worldwide and Flutter Entertainment

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

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

Diversification Opportunities for Hilton Worldwide and Flutter Entertainment

0.59

Correlation Coefficient

Hilton Worldwide  Flutter Entertainment

Very weak diversification

The 3 months correlation between Hilton and Flutter is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Hilton Worldwide Holdings 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 Hilton Worldwide 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 Hilton Worldwide Holdings 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 Hilton Worldwide i.e., Hilton Worldwide and Flutter Entertainment go up and down completely randomly.

Pair Corralation between Hilton Worldwide and Flutter Entertainment

Considering the 90-day investment horizon Hilton Worldwide Holdings is expected to generate 0.58 times more return on investment than Flutter Entertainment. However, Hilton Worldwide Holdings is 1.72 times less risky than Flutter Entertainment. It trades about 0.0 of its potential returns per unit of risk. Flutter Entertainment plc is currently generating about -0.19 per unit of risk. If you would invest  26,081  in Hilton Worldwide Holdings on August 6, 2025 and sell it today you would lose (172.00) from holding Hilton Worldwide Holdings or give up 0.66% of portfolio value over 90 days.

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

Hilton Worldwide Holdings  vs.  Flutter Entertainment plc

Hilton Worldwide Holdings

Risk-Adjusted Performance

Weakest

Over the last 90 days Hilton Worldwide Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable essential indicators, Hilton Worldwide is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Flutter Entertainment plc

Risk-Adjusted Performance

Weakest

Over the last 90 days Flutter Entertainment plc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in December 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Hilton Worldwide and Flutter Entertainment

The main advantage of trading using opposite Hilton Worldwide and Flutter Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hilton Worldwide 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 Hilton Worldwide Holdings 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.