Correlation Between Flutter Entertainment and NORTH MEDIA

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

Diversification Opportunities for Flutter Entertainment and NORTH MEDIA

0.81

Correlation Coefficient

Flutter Entertainment  NORTH MEDIA

Very poor diversification

The 3 months correlation between Flutter and NORTH is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Flutter Entertainment PLC and NORTH MEDIA AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NORTH MEDIA AS 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 NORTH MEDIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NORTH MEDIA AS has no effect on the direction of Flutter Entertainment i.e., Flutter Entertainment and NORTH MEDIA go up and down completely randomly.

Pair Corralation between Flutter Entertainment and NORTH MEDIA

Assuming the 90 days trading horizon Flutter Entertainment is expected to generate 2.05 times less return on investment than NORTH MEDIA. In addition to that, Flutter Entertainment is 1.11 times more volatile than NORTH MEDIA AS. It trades about 0.1 of its total potential returns per unit of risk. NORTH MEDIA AS is currently generating about 0.23 per unit of volatility. If you would invest  493.00  in NORTH MEDIA AS on May 17, 2025 and sell it today you would earn a total of  133.00  from holding NORTH MEDIA AS or generate 26.98% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	98.46%
Values	Daily Returns

Flutter Entertainment PLC  vs.  NORTH MEDIA AS

Flutter Entertainment PLC

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Flutter Entertainment PLC are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Flutter Entertainment may actually be approaching a critical reversion point that can send shares even higher in September 2025.

NORTH MEDIA AS

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in NORTH MEDIA AS are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, NORTH MEDIA reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Flutter Entertainment and NORTH MEDIA

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

The idea behind Flutter Entertainment PLC and NORTH MEDIA AS 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.

Check out your portfolio center.

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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.