Correlation Between Penn National and Marie Brizard
Can any of the company-specific risk be diversified away by investing in both Penn National and Marie Brizard 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 Penn National and Marie Brizard into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Penn National Gaming and Marie Brizard Wine, you can compare the effects of market volatilities on Penn National and Marie Brizard 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 Penn National with a short position of Marie Brizard. Check out your portfolio center. Please also check ongoing floating volatility patterns of Penn National and Marie Brizard.
Diversification Opportunities for Penn National and Marie Brizard
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Penn and Marie is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Penn National Gaming and Marie Brizard Wine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marie Brizard Wine and Penn National 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 Penn National Gaming are associated (or correlated) with Marie Brizard. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marie Brizard Wine has no effect on the direction of Penn National i.e., Penn National and Marie Brizard go up and down completely randomly.
Pair Corralation between Penn National and Marie Brizard
Assuming the 90 days horizon Penn National Gaming is expected to under-perform the Marie Brizard. In addition to that, Penn National is 2.06 times more volatile than Marie Brizard Wine. It trades about -0.01 of its total potential returns per unit of risk. Marie Brizard Wine is currently generating about 0.07 per unit of volatility. If you would invest 222.00 in Marie Brizard Wine on September 3, 2024 and sell it today you would earn a total of 156.00 from holding Marie Brizard Wine or generate 70.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Penn National Gaming vs. Marie Brizard Wine
Performance |
| Timeline |
| Penn National Gaming |
| Marie Brizard Wine |
Penn National and Marie Brizard Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Penn National and Marie Brizard
The main advantage of trading using opposite Penn National and Marie Brizard positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Penn National position performs unexpectedly, Marie Brizard 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 Marie Brizard will offset losses from the drop in Marie Brizard's long position.| Penn National vs. CHINA TONTINE WINES | Penn National vs. Ross Stores | Penn National vs. RETAIL FOOD GROUP | Penn National vs. Costco Wholesale Corp |
| Marie Brizard vs. CEOTRONICS | Marie Brizard vs. SHIP HEALTHCARE HLDGINC | Marie Brizard vs. EHEALTH | Marie Brizard vs. Treasury Wine Estates |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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