Correlation Between TC Traders and PENN Entertainment,

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

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

Diversification Opportunities for TC Traders and PENN Entertainment,

-0.54

Correlation Coefficient

TC Traders  PENN Entertainment,

Excellent diversification

The 3 months correlation between TRAD3 and PENN is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding TC Traders Club and PENN Entertainment, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PENN Entertainment, and TC Traders 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 TC Traders Club 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 TC Traders i.e., TC Traders and PENN Entertainment, go up and down completely randomly.

Pair Corralation between TC Traders and PENN Entertainment,

Assuming the 90 days trading horizon TC Traders Club is expected to generate 1.28 times more return on investment than PENN Entertainment,. However, TC Traders is 1.28 times more volatile than PENN Entertainment,. It trades about 0.06 of its potential returns per unit of risk. PENN Entertainment, is currently generating about -0.07 per unit of risk. If you would invest  660.00  in TC Traders Club on April 25, 2025 and sell it today you would earn a total of  74.00  from holding TC Traders Club or generate 11.21% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.41%
Values	Daily Returns

TC Traders Club  vs.  PENN Entertainment,

TC Traders Club

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in TC Traders Club are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, TC Traders unveiled solid returns over the last few months and may actually be approaching a breakup point.

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 TC Traders and PENN Entertainment,

The main advantage of trading using opposite TC Traders and PENN Entertainment, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TC Traders 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 TC Traders Club 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.

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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.