Correlation Between Portillos and Gambling
Can any of the company-specific risk be diversified away by investing in both Portillos and Gambling 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 Portillos and Gambling into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Portillos and Gambling Group, you can compare the effects of market volatilities on Portillos and Gambling 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 Portillos with a short position of Gambling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Portillos and Gambling.
Diversification Opportunities for Portillos and Gambling
Pay attention - limited upside
The 3 months correlation between Portillos and Gambling is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Portillos and Gambling Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gambling Group and Portillos 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 Portillos are associated (or correlated) with Gambling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gambling Group has no effect on the direction of Portillos i.e., Portillos and Gambling go up and down completely randomly.
Pair Corralation between Portillos and Gambling
Given the investment horizon of 90 days Portillos is expected to under-perform the Gambling. But the stock apears to be less risky and, when comparing its historical volatility, Portillos is 1.0 times less risky than Gambling. The stock trades about -0.02 of its potential returns per unit of risk. The Gambling Group is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 949.00 in Gambling Group on August 27, 2024 and sell it today you would earn a total of 355.00 from holding Gambling Group or generate 37.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Portillos vs. Gambling Group
Performance |
| Timeline |
| Portillos |
| Gambling Group |
Portillos and Gambling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Portillos and Gambling
The main advantage of trading using opposite Portillos and Gambling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Portillos position performs unexpectedly, Gambling 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 Gambling will offset losses from the drop in Gambling's long position.| Portillos vs. Brinker International | Portillos vs. Bloomin Brands | Portillos vs. Wingstop | Portillos vs. Papa Johns International |
| Gambling vs. Codere Online Corp | Gambling vs. Accel Entertainment | Gambling vs. PlayAGS | Gambling vs. Canterbury Park Holding |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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