Correlation Between Flutter Entertainment and Ryanair Holdings
Can any of the company-specific risk be diversified away by investing in both Flutter Entertainment and Ryanair Holdings 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 Ryanair Holdings 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 Ryanair Holdings plc, you can compare the effects of market volatilities on Flutter Entertainment and Ryanair Holdings 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 Ryanair Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flutter Entertainment and Ryanair Holdings.
Diversification Opportunities for Flutter Entertainment and Ryanair Holdings
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Flutter and Ryanair is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Flutter Entertainment PLC and Ryanair Holdings plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ryanair Holdings plc 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 Ryanair Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ryanair Holdings plc has no effect on the direction of Flutter Entertainment i.e., Flutter Entertainment and Ryanair Holdings go up and down completely randomly.
Pair Corralation between Flutter Entertainment and Ryanair Holdings
Assuming the 90 days trading horizon Flutter Entertainment PLC is expected to under-perform the Ryanair Holdings. In addition to that, Flutter Entertainment is 6.4 times more volatile than Ryanair Holdings plc. It trades about -0.12 of its total potential returns per unit of risk. Ryanair Holdings plc is currently generating about -0.07 per unit of volatility. If you would invest 203,675 in Ryanair Holdings plc on August 14, 2025 and sell it today you would lose (3,175) from holding Ryanair Holdings plc or give up 1.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.44% |
| Values | Daily Returns |
Flutter Entertainment PLC vs. Ryanair Holdings plc
Performance |
| Timeline |
| Flutter Entertainment PLC |
| Ryanair Holdings plc |
Flutter Entertainment and Ryanair Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flutter Entertainment and Ryanair Holdings
The main advantage of trading using opposite Flutter Entertainment and Ryanair Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flutter Entertainment position performs unexpectedly, Ryanair Holdings 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 Ryanair Holdings will offset losses from the drop in Ryanair Holdings' long position.| Flutter Entertainment vs. Toyota Motor Corp | Flutter Entertainment vs. SoftBank Group Corp | Flutter Entertainment vs. Nintendo Co | Flutter Entertainment vs. Fannie Mae |
| Ryanair Holdings vs. Flutter Entertainment PLC | Ryanair Holdings vs. Ferguson Plc | Ryanair Holdings vs. Marwyn Value Investors | Ryanair Holdings vs. Games Workshop Group |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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