Correlation Between BRAGG GAMING and PENN NATL
Can any of the company-specific risk be diversified away by investing in both BRAGG GAMING and PENN NATL 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 BRAGG GAMING and PENN NATL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BRAGG GAMING GRP and PENN NATL GAMING, you can compare the effects of market volatilities on BRAGG GAMING and PENN NATL 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 BRAGG GAMING with a short position of PENN NATL. Check out your portfolio center. Please also check ongoing floating volatility patterns of BRAGG GAMING and PENN NATL.
Diversification Opportunities for BRAGG GAMING and PENN NATL
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BRAGG and PENN is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding BRAGG GAMING GRP and PENN NATL GAMING in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PENN NATL GAMING and BRAGG GAMING 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 BRAGG GAMING GRP are associated (or correlated) with PENN NATL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PENN NATL GAMING has no effect on the direction of BRAGG GAMING i.e., BRAGG GAMING and PENN NATL go up and down completely randomly.
Pair Corralation between BRAGG GAMING and PENN NATL
Assuming the 90 days horizon BRAGG GAMING GRP is expected to generate 1.36 times more return on investment than PENN NATL. However, BRAGG GAMING is 1.36 times more volatile than PENN NATL GAMING. It trades about 0.12 of its potential returns per unit of risk. PENN NATL GAMING is currently generating about -0.11 per unit of risk. If you would invest 308.00 in BRAGG GAMING GRP on September 22, 2024 and sell it today you would earn a total of 28.00 from holding BRAGG GAMING GRP or generate 9.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BRAGG GAMING GRP vs. PENN NATL GAMING
Performance |
| Timeline |
| BRAGG GAMING GRP |
| PENN NATL GAMING |
BRAGG GAMING and PENN NATL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BRAGG GAMING and PENN NATL
The main advantage of trading using opposite BRAGG GAMING and PENN NATL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BRAGG GAMING position performs unexpectedly, PENN NATL 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 PENN NATL will offset losses from the drop in PENN NATL's long position.| BRAGG GAMING vs. Plastic Omnium | BRAGG GAMING vs. National Health Investors | BRAGG GAMING vs. Rayonier Advanced Materials | BRAGG GAMING vs. SANOK RUBBER ZY |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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