Correlation Between Flutter Entertainment and Amdocs

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

Diversification Opportunities for Flutter Entertainment and Amdocs

-0.89

Correlation Coefficient

Flutter Entertainment  Amdocs

Pay attention - limited upside

The 3 months correlation between Flutter and Amdocs is -0.89. Overlapping area represents the amount of risk that can be diversified away by holding Flutter Entertainment PLC and Amdocs Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amdocs Limited 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 Amdocs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amdocs Limited has no effect on the direction of Flutter Entertainment i.e., Flutter Entertainment and Amdocs go up and down completely randomly.

Pair Corralation between Flutter Entertainment and Amdocs

Assuming the 90 days trading horizon Flutter Entertainment PLC is expected to generate 1.46 times more return on investment than Amdocs. However, Flutter Entertainment is 1.46 times more volatile than Amdocs Limited. It trades about 0.11 of its potential returns per unit of risk. Amdocs Limited is currently generating about -0.08 per unit of risk. If you would invest  21,400  in Flutter Entertainment PLC on May 11, 2025 and sell it today you would earn a total of  2,890  from holding Flutter Entertainment PLC or generate 13.5% return on investment over 90 days.

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

Flutter Entertainment PLC  vs.  Amdocs Limited

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 8 (%) 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.

Amdocs Limited

Risk-Adjusted Performance

Weakest

Over the last 90 days Amdocs Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Amdocs is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Flutter Entertainment and Amdocs

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

The idea behind Flutter Entertainment PLC and Amdocs Limited 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.