Correlation Between Multilaser Industrial and PENN Entertainment,

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

By analyzing existing cross correlation between Multilaser Industrial SA and PENN Entertainment,, you can compare the effects of market volatilities on Multilaser Industrial and PENN Entertainment, 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 Multilaser Industrial with a short position of PENN Entertainment,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multilaser Industrial and PENN Entertainment,.

Diversification Opportunities for Multilaser Industrial and PENN Entertainment,

0.58

Correlation Coefficient

Multilaser Industrial  PENN Entertainment,

Very weak diversification

The 3 months correlation between Multilaser and PENN is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Multilaser Industrial SA and PENN Entertainment, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PENN Entertainment, and Multilaser Industrial 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 Multilaser Industrial SA are associated (or correlated) with PENN Entertainment,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PENN Entertainment, has no effect on the direction of Multilaser Industrial i.e., Multilaser Industrial and PENN Entertainment, go up and down completely randomly.

Pair Corralation between Multilaser Industrial and PENN Entertainment,

Assuming the 90 days trading horizon Multilaser Industrial SA is expected to generate 0.9 times more return on investment than PENN Entertainment,. However, Multilaser Industrial SA is 1.11 times less risky than PENN Entertainment,. It trades about -0.08 of its potential returns per unit of risk. PENN Entertainment, is currently generating about -0.08 per unit of risk. If you would invest  130.00  in Multilaser Industrial SA on April 18, 2025 and sell it today you would lose (23.00) from holding Multilaser Industrial SA or give up 17.69% of portfolio value over 90 days.

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

Multilaser Industrial SA  vs.  PENN Entertainment,

Multilaser Industrial

Risk-Adjusted Performance

Very Weak

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

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. Despite weak performance in the last few months, the Stock's technical and fundamental indicators remain somewhat strong which may send shares a bit higher in August 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Multilaser Industrial and PENN Entertainment,

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

The idea behind Multilaser Industrial SA and PENN Entertainment, 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 CEOs Directory module to screen CEOs from public companies around the world.