Correlation Between Flutter Entertainment and Western Asset
Can any of the company-specific risk be diversified away by investing in both Flutter Entertainment and Western Asset 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 Western Asset 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 Western Asset Investment, you can compare the effects of market volatilities on Flutter Entertainment and Western Asset 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 Western Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flutter Entertainment and Western Asset.
Diversification Opportunities for Flutter Entertainment and Western Asset
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Flutter and Western is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Flutter Entertainment plc and Western Asset Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Asset Investment 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 Western Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Asset Investment has no effect on the direction of Flutter Entertainment i.e., Flutter Entertainment and Western Asset go up and down completely randomly.
Pair Corralation between Flutter Entertainment and Western Asset
Given the investment horizon of 90 days Flutter Entertainment plc is expected to under-perform the Western Asset. In addition to that, Flutter Entertainment is 7.88 times more volatile than Western Asset Investment. It trades about -0.16 of its total potential returns per unit of risk. Western Asset Investment is currently generating about -0.05 per unit of volatility. If you would invest 1,665 in Western Asset Investment on September 7, 2025 and sell it today you would lose (19.00) from holding Western Asset Investment or give up 1.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Flutter Entertainment plc vs. Western Asset Investment
Performance |
| Timeline |
| Flutter Entertainment plc |
| Western Asset Investment |
Flutter Entertainment and Western Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flutter Entertainment and Western Asset
The main advantage of trading using opposite Flutter Entertainment and Western Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flutter Entertainment position performs unexpectedly, Western Asset 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 Western Asset will offset losses from the drop in Western Asset's long position.| Flutter Entertainment vs. Biglari Holdings | Flutter Entertainment vs. Smart Share Global | Flutter Entertainment vs. Ihuman Inc | Flutter Entertainment vs. Premium Catering Limited |
| Western Asset vs. Hyperscale Data, | Western Asset vs. Slide Insurance Holdings, | Western Asset vs. Information Planning LTD | Western Asset vs. Vienna Insurance 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |