Correlation Between BRAGG GAMING and Penn National
Can any of the company-specific risk be diversified away by investing in both BRAGG GAMING and Penn National 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 National 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 National Gaming, you can compare the effects of market volatilities on BRAGG GAMING and Penn National 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 National. Check out your portfolio center. Please also check ongoing floating volatility patterns of BRAGG GAMING and Penn National.
Diversification Opportunities for BRAGG GAMING and Penn National
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BRAGG and Penn is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding BRAGG GAMING GRP and Penn National Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Penn National 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 National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Penn National Gaming has no effect on the direction of BRAGG GAMING i.e., BRAGG GAMING and Penn National go up and down completely randomly.
Pair Corralation between BRAGG GAMING and Penn National
Assuming the 90 days horizon BRAGG GAMING GRP is expected to generate 1.53 times more return on investment than Penn National. However, BRAGG GAMING is 1.53 times more volatile than Penn National Gaming. It trades about 0.23 of its potential returns per unit of risk. Penn National Gaming is currently generating about 0.2 per unit of risk. If you would invest 334.00 in BRAGG GAMING GRP on October 25, 2024 and sell it today you would earn a total of 66.00 from holding BRAGG GAMING GRP or generate 19.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BRAGG GAMING GRP vs. Penn National Gaming
Performance |
| Timeline |
| BRAGG GAMING GRP |
| Penn National Gaming |
BRAGG GAMING and Penn National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BRAGG GAMING and Penn National
The main advantage of trading using opposite BRAGG GAMING and Penn National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BRAGG GAMING position performs unexpectedly, Penn National 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 National will offset losses from the drop in Penn National's long position.| BRAGG GAMING vs. Apollo Investment Corp | BRAGG GAMING vs. LPKF Laser Electronics | BRAGG GAMING vs. AGNC INVESTMENT | BRAGG GAMING vs. New Residential Investment |
| Penn National vs. Nufarm Limited | Penn National vs. TITAN MACHINERY | Penn National vs. DAIRY FARM INTL | Penn National vs. Tokyu Construction Co |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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