Correlation Between PROG Holdings and Flutter Entertainment
Can any of the company-specific risk be diversified away by investing in both PROG Holdings 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 PROG Holdings and Flutter Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PROG Holdings and Flutter Entertainment plc, you can compare the effects of market volatilities on PROG Holdings 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 PROG Holdings with a short position of Flutter Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of PROG Holdings and Flutter Entertainment.
Diversification Opportunities for PROG Holdings and Flutter Entertainment
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PROG and Flutter is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding PROG Holdings 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 PROG Holdings 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 PROG Holdings 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 PROG Holdings i.e., PROG Holdings and Flutter Entertainment go up and down completely randomly.
Pair Corralation between PROG Holdings and Flutter Entertainment
Considering the 90-day investment horizon PROG Holdings is expected to generate 1.35 times less return on investment than Flutter Entertainment. In addition to that, PROG Holdings is 1.49 times more volatile than Flutter Entertainment plc. It trades about 0.09 of its total potential returns per unit of risk. Flutter Entertainment plc is currently generating about 0.18 per unit of volatility. If you would invest 24,098 in Flutter Entertainment plc on May 23, 2025 and sell it today you would earn a total of 5,355 from holding Flutter Entertainment plc or generate 22.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PROG Holdings vs. Flutter Entertainment plc
Performance |
| Timeline |
| PROG Holdings |
| Flutter Entertainment plc |
PROG Holdings and Flutter Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PROG Holdings and Flutter Entertainment
The main advantage of trading using opposite PROG Holdings and Flutter Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PROG Holdings 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.| PROG Holdings vs. Alta Equipment Group | PROG Holdings vs. GATX Corporation | PROG Holdings vs. McGrath RentCorp | PROG Holdings vs. Adtalem Global Education |
| Flutter Entertainment vs. Corsair Gaming | Flutter Entertainment vs. Levi Strauss Co | Flutter Entertainment vs. Shoe Carnival | Flutter Entertainment vs. AerSale Corp |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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