Correlation Between Games Workshop and Penn National

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Can any of the company-specific risk be diversified away by investing in both Games Workshop 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 Games Workshop and Penn National into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Games Workshop Group and Penn National Gaming, you can compare the effects of market volatilities on Games Workshop 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 Games Workshop with a short position of Penn National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Games Workshop and Penn National.

Diversification Opportunities for Games Workshop and Penn National

-0.58
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Games and Penn is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Games Workshop Group 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 Games Workshop 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 Games Workshop Group 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 Games Workshop i.e., Games Workshop and Penn National go up and down completely randomly.

Pair Corralation between Games Workshop and Penn National

Assuming the 90 days horizon Games Workshop Group is expected to generate 1.01 times more return on investment than Penn National. However, Games Workshop is 1.01 times more volatile than Penn National Gaming. It trades about 0.17 of its potential returns per unit of risk. Penn National Gaming is currently generating about -0.18 per unit of risk. If you would invest  20,329  in Games Workshop Group on September 6, 2025 and sell it today you would earn a total of  6,466  from holding Games Workshop Group or generate 31.81% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Games Workshop Group  vs.  Penn National Gaming

 Performance 
       Timeline  
Games Workshop Group 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Games Workshop Group are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite nearly inconsistent forward-looking signals, Games Workshop reported solid returns over the last few months and may actually be approaching a breakup point.
Penn National Gaming 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Penn National Gaming has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in January 2026. The recent disarray may also be a sign of long period up-swing for the firm investors.

Games Workshop and Penn National Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Games Workshop and Penn National

The main advantage of trading using opposite Games Workshop and Penn National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Games Workshop 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.
The idea behind Games Workshop Group and Penn National Gaming 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.

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