Correlation Between Gambling and Bloomin Brands
Can any of the company-specific risk be diversified away by investing in both Gambling and Bloomin Brands 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 Gambling and Bloomin Brands into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gambling Group and Bloomin Brands, you can compare the effects of market volatilities on Gambling and Bloomin Brands 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 Gambling with a short position of Bloomin Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gambling and Bloomin Brands.
Diversification Opportunities for Gambling and Bloomin Brands
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Gambling and Bloomin is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Gambling Group and Bloomin Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bloomin Brands and Gambling 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 Gambling Group are associated (or correlated) with Bloomin Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bloomin Brands has no effect on the direction of Gambling i.e., Gambling and Bloomin Brands go up and down completely randomly.
Pair Corralation between Gambling and Bloomin Brands
Given the investment horizon of 90 days Gambling Group is expected to generate 1.05 times more return on investment than Bloomin Brands. However, Gambling is 1.05 times more volatile than Bloomin Brands. It trades about 0.29 of its potential returns per unit of risk. Bloomin Brands is currently generating about -0.14 per unit of risk. If you would invest 982.00 in Gambling Group on August 31, 2024 and sell it today you would earn a total of 310.00 from holding Gambling Group or generate 31.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gambling Group vs. Bloomin Brands
Performance |
| Timeline |
| Gambling Group |
| Bloomin Brands |
Gambling and Bloomin Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gambling and Bloomin Brands
The main advantage of trading using opposite Gambling and Bloomin Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gambling position performs unexpectedly, Bloomin Brands 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 Bloomin Brands will offset losses from the drop in Bloomin Brands' long position.| Gambling vs. Light Wonder | Gambling vs. Everi Holdings | Gambling vs. Inspired Entertainment | Gambling vs. PlayAGS |
| Bloomin Brands vs. Dine Brands Global | Bloomin Brands vs. BJs Restaurants | Bloomin Brands vs. The Cheesecake Factory | Bloomin Brands vs. Brinker International |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |