Correlation Between PENN Entertainment and Bayerische Motoren
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By analyzing existing cross correlation between PENN Entertainment and Bayerische Motoren Werke, you can compare the effects of market volatilities on PENN Entertainment and Bayerische Motoren 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 Entertainment with a short position of Bayerische Motoren. Check out your portfolio center. Please also check ongoing floating volatility patterns of PENN Entertainment and Bayerische Motoren.
Diversification Opportunities for PENN Entertainment and Bayerische Motoren
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PENN and Bayerische is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PENN Entertainment and Bayerische Motoren Werke in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bayerische Motoren Werke and PENN 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 PENN Entertainment are associated (or correlated) with Bayerische Motoren. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bayerische Motoren Werke has no effect on the direction of PENN Entertainment i.e., PENN Entertainment and Bayerische Motoren go up and down completely randomly.
Pair Corralation between PENN Entertainment and Bayerische Motoren
Assuming the 90 days trading horizon PENN Entertainment is expected to generate 1.77 times more return on investment than Bayerische Motoren. However, PENN Entertainment is 1.77 times more volatile than Bayerische Motoren Werke. It trades about 0.15 of its potential returns per unit of risk. Bayerische Motoren Werke is currently generating about 0.11 per unit of risk. If you would invest 1,799 in PENN Entertainment on November 4, 2024 and sell it today you would earn a total of 164.00 from holding PENN Entertainment or generate 9.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PENN Entertainment vs. Bayerische Motoren Werke
Performance |
| Timeline |
| PENN Entertainment |
| Bayerische Motoren Werke |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
PENN Entertainment and Bayerische Motoren Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PENN Entertainment and Bayerische Motoren
The main advantage of trading using opposite PENN Entertainment and Bayerische Motoren positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PENN Entertainment position performs unexpectedly, Bayerische Motoren 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 Bayerische Motoren will offset losses from the drop in Bayerische Motoren's long position.| PENN Entertainment vs. MARKET VECTR RETAIL | PENN Entertainment vs. ATRESMEDIA | PENN Entertainment vs. G III Apparel Group | PENN Entertainment vs. COSTCO WHOLESALE CDR |
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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 CEOs Directory module to screen CEOs from public companies around the world.
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