Correlation Between Penn National and BankInvest

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

By analyzing existing cross correlation between Penn National Gaming and BankInvest EM Aktier, you can compare the effects of market volatilities on Penn National and BankInvest 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 Penn National with a short position of BankInvest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Penn National and BankInvest.

Diversification Opportunities for Penn National and BankInvest

0.0

Correlation Coefficient

Penn National  BankInvest

Pay attention - limited upside

The 3 months correlation between Penn and BankInvest is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Penn National Gaming and BankInvest EM Aktier in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BankInvest EM Aktier and Penn National 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 Penn National Gaming are associated (or correlated) with BankInvest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BankInvest EM Aktier has no effect on the direction of Penn National i.e., Penn National and BankInvest go up and down completely randomly.

Pair Corralation between Penn National and BankInvest

If you would invest  1,848  in Penn National Gaming on October 8, 2024 and sell it today you would earn a total of  28.00  from holding Penn National Gaming or generate 1.52% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Penn National Gaming  vs.  BankInvest EM Aktier

Penn National Gaming

Risk-Adjusted Performance

1 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Penn National Gaming are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Penn National is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

BankInvest EM Aktier

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days BankInvest EM Aktier has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, BankInvest is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Penn National and BankInvest

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

The idea behind Penn National Gaming and BankInvest EM Aktier 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.