Correlation Between Penn National and ANGLER GAMING

Can any of the company-specific risk be diversified away by investing in both Penn National and ANGLER GAMING 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 ANGLER GAMING 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 ANGLER GAMING PLC, you can compare the effects of market volatilities on Penn National and ANGLER GAMING 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 ANGLER GAMING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Penn National and ANGLER GAMING.

Diversification Opportunities for Penn National and ANGLER GAMING

-0.53

Correlation Coefficient

Penn National  ANGLER GAMING

Excellent diversification

The 3 months correlation between Penn and ANGLER is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Penn National Gaming and ANGLER GAMING PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANGLER GAMING PLC 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 ANGLER GAMING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANGLER GAMING PLC has no effect on the direction of Penn National i.e., Penn National and ANGLER GAMING go up and down completely randomly.

Pair Corralation between Penn National and ANGLER GAMING

Assuming the 90 days horizon Penn National Gaming is expected to generate 0.55 times more return on investment than ANGLER GAMING. However, Penn National Gaming is 1.81 times less risky than ANGLER GAMING. It trades about 0.11 of its potential returns per unit of risk. ANGLER GAMING PLC is currently generating about -0.06 per unit of risk. If you would invest  1,904  in Penn National Gaming on August 31, 2024 and sell it today you would earn a total of  113.00  from holding Penn National Gaming or generate 5.93% return on investment over 90 days.

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

Penn National Gaming  vs.  ANGLER GAMING PLC

Penn National Gaming

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Penn National Gaming are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Penn National reported solid returns over the last few months and may actually be approaching a breakup point.

ANGLER GAMING PLC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ANGLER GAMING PLC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, ANGLER GAMING is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Penn National and ANGLER GAMING

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

The idea behind Penn National Gaming and ANGLER GAMING PLC 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.