Correlation Between Gateway Real and Penn National
Can any of the company-specific risk be diversified away by investing in both Gateway Real 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 Gateway Real and Penn National into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gateway Real Estate and Penn National Gaming, you can compare the effects of market volatilities on Gateway Real 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 Gateway Real with a short position of Penn National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gateway Real and Penn National.
Diversification Opportunities for Gateway Real and Penn National
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Gateway and Penn is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Gateway Real Estate 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 Gateway Real 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 Gateway Real Estate 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 Gateway Real i.e., Gateway Real and Penn National go up and down completely randomly.
Pair Corralation between Gateway Real and Penn National
Assuming the 90 days horizon Gateway Real Estate is expected to under-perform the Penn National. In addition to that, Gateway Real is 2.08 times more volatile than Penn National Gaming. It trades about -0.15 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 1,954 in Penn National Gaming on September 24, 2024 and sell it today you would lose (218.00) from holding Penn National Gaming or give up 11.16% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Gateway Real Estate vs. Penn National Gaming
Performance |
Timeline |
Gateway Real Estate |
Penn National Gaming |
Gateway Real and Penn National Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Gateway Real and Penn National
The main advantage of trading using opposite Gateway Real and Penn National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gateway Real 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.Gateway Real vs. Penn National Gaming | Gateway Real vs. MCEWEN MINING INC | Gateway Real vs. GRIFFIN MINING LTD | Gateway Real vs. ADRIATIC METALS LS 013355 |
Penn National vs. Las Vegas Sands | Penn National vs. Galaxy Entertainment Group | Penn National vs. Sands China | Penn National vs. MGM Resorts International |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |