Correlation Between GameStop Corp and Penn National
Can any of the company-specific risk be diversified away by investing in both GameStop Corp 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 GameStop Corp and Penn National into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GameStop Corp and Penn National Gaming, you can compare the effects of market volatilities on GameStop Corp 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 GameStop Corp with a short position of Penn National. Check out your portfolio center. Please also check ongoing floating volatility patterns of GameStop Corp and Penn National.
Diversification Opportunities for GameStop Corp and Penn National
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GameStop and Penn is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding GameStop Corp 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 GameStop Corp 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 GameStop Corp 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 GameStop Corp i.e., GameStop Corp and Penn National go up and down completely randomly.
Pair Corralation between GameStop Corp and Penn National
Considering the 90-day investment horizon GameStop Corp is expected to under-perform the Penn National. In addition to that, GameStop Corp is 1.45 times more volatile than Penn National Gaming. It trades about -0.16 of its total potential returns per unit of risk. Penn National Gaming is currently generating about 0.16 per unit of volatility. If you would invest 1,538 in Penn National Gaming on May 27, 2025 and sell it today you would earn a total of 411.00 from holding Penn National Gaming or generate 26.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GameStop Corp vs. Penn National Gaming
Performance |
| Timeline |
| GameStop Corp |
| Penn National Gaming |
GameStop Corp and Penn National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GameStop Corp and Penn National
The main advantage of trading using opposite GameStop Corp and Penn National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GameStop Corp 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.| GameStop Corp vs. AMC Entertainment Holdings | GameStop Corp vs. BlackBerry | GameStop Corp vs. Best Buy Co | GameStop Corp vs. Coinbase Global |
| Penn National vs. DraftKings | Penn National vs. MGM Resorts International | Penn National vs. Caesars Entertainment | Penn National vs. Boyd Gaming |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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