Correlation Between PENN Entertainment and Grupo Media

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

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

Diversification Opportunities for PENN Entertainment and Grupo Media

0.0

Correlation Coefficient

PENN Entertainment  Grupo Media

Pay attention - limited upside

The 3 months correlation between PENN and Grupo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PENN Entertainment and Grupo Media Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Media Capital 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 Grupo Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Media Capital has no effect on the direction of PENN Entertainment i.e., PENN Entertainment and Grupo Media go up and down completely randomly.

Pair Corralation between PENN Entertainment and Grupo Media

If you would invest  107.00  in Grupo Media Capital on December 21, 2024 and sell it today you would earn a total of  0.00  from holding Grupo Media Capital or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

PENN Entertainment  vs.  Grupo Media Capital

PENN Entertainment

Risk-Adjusted Performance

Very Weak

Over the last 90 days PENN Entertainment has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Grupo Media Capital

Risk-Adjusted Performance

Very Weak

Over the last 90 days Grupo Media Capital has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Grupo Media is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with PENN Entertainment and Grupo Media

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

The idea behind PENN Entertainment and Grupo Media Capital 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.

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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.