Correlation Between PENN Entertainment, and Brpr Corporate

Can any of the company-specific risk be diversified away by investing in both PENN Entertainment, and Brpr Corporate 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 Entertainment, and Brpr Corporate into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between PENN Entertainment, and Brpr Corporate Offices, you can compare the effects of market volatilities on PENN Entertainment, and Brpr Corporate 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 Brpr Corporate. Check out your portfolio center. Please also check ongoing floating volatility patterns of PENN Entertainment, and Brpr Corporate.

Diversification Opportunities for PENN Entertainment, and Brpr Corporate

0.72

Correlation Coefficient

PENN Entertainment,  Brpr Corporate

Poor diversification

The 3 months correlation between PENN and Brpr is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding PENN Entertainment, and Brpr Corporate Offices in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brpr Corporate Offices 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 Brpr Corporate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brpr Corporate Offices has no effect on the direction of PENN Entertainment, i.e., PENN Entertainment, and Brpr Corporate go up and down completely randomly.

Pair Corralation between PENN Entertainment, and Brpr Corporate

Assuming the 90 days trading horizon PENN Entertainment, is expected to generate 3.74 times less return on investment than Brpr Corporate. But when comparing it to its historical volatility, PENN Entertainment, is 4.61 times less risky than Brpr Corporate. It trades about 0.15 of its potential returns per unit of risk. Brpr Corporate Offices is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  4,132  in Brpr Corporate Offices on December 22, 2024 and sell it today you would earn a total of  588.00  from holding Brpr Corporate Offices or generate 14.23% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

PENN Entertainment,  vs.  Brpr Corporate Offices

PENN Entertainment,

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in PENN Entertainment, are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong technical and fundamental indicators, PENN Entertainment, is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Brpr Corporate Offices

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Brpr Corporate Offices are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Brpr Corporate sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with PENN Entertainment, and Brpr Corporate

The main advantage of trading using opposite PENN Entertainment, and Brpr Corporate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PENN Entertainment, position performs unexpectedly, Brpr Corporate 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 Brpr Corporate will offset losses from the drop in Brpr Corporate's long position.

The idea behind PENN Entertainment, and Brpr Corporate Offices pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.