Correlation Between SEI Investments and Flutter Entertainment

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

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

Diversification Opportunities for SEI Investments and Flutter Entertainment

0.51

Correlation Coefficient

SEI Investments  Flutter Entertainment

Very weak diversification

The 3 months correlation between SEI and Flutter is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding SEI Investments 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 SEI Investments 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 SEI Investments 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 SEI Investments i.e., SEI Investments and Flutter Entertainment go up and down completely randomly.

Pair Corralation between SEI Investments and Flutter Entertainment

Given the investment horizon of 90 days SEI Investments is expected to generate 1.17 times less return on investment than Flutter Entertainment. But when comparing it to its historical volatility, SEI Investments is 1.82 times less risky than Flutter Entertainment. It trades about 0.07 of its potential returns per unit of risk. Flutter Entertainment plc is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  15,480  in Flutter Entertainment plc on July 10, 2025 and sell it today you would earn a total of  8,309  from holding Flutter Entertainment plc or generate 53.68% return on investment over 90 days.

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

SEI Investments  vs.  Flutter Entertainment plc

SEI Investments

Risk-Adjusted Performance

Weakest

Over the last 90 days SEI Investments has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest inconsistent performance, the Stock's forward indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

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 inconsistent performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in November 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with SEI Investments and Flutter Entertainment

The main advantage of trading using opposite SEI Investments and Flutter Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SEI Investments 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 SEI Investments 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.