Correlation Between Penn National and OURGAME INTHOLDL-00005

Can any of the company-specific risk be diversified away by investing in both Penn National and OURGAME INTHOLDL-00005 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 OURGAME INTHOLDL-00005 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 OURGAME INTHOLDL 00005, you can compare the effects of market volatilities on Penn National and OURGAME INTHOLDL-00005 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 OURGAME INTHOLDL-00005. Check out your portfolio center. Please also check ongoing floating volatility patterns of Penn National and OURGAME INTHOLDL-00005.

Diversification Opportunities for Penn National and OURGAME INTHOLDL-00005

0.0

Correlation Coefficient

Penn National  OURGAME INTHOLDL-00005

Pay attention - limited upside

The 3 months correlation between Penn and OURGAME is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Penn National Gaming and OURGAME INTHOLDL 00005 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OURGAME INTHOLDL 00005 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 OURGAME INTHOLDL-00005. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OURGAME INTHOLDL 00005 has no effect on the direction of Penn National i.e., Penn National and OURGAME INTHOLDL-00005 go up and down completely randomly.

Pair Corralation between Penn National and OURGAME INTHOLDL-00005

If you would invest  1,984  in Penn National Gaming on November 29, 2024 and sell it today you would lose (25.00) from holding Penn National Gaming or give up 1.26% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Penn National Gaming  vs.  OURGAME INTHOLDL 00005

Penn National Gaming

Risk-Adjusted Performance

Very Weak

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

OURGAME INTHOLDL 00005

Risk-Adjusted Performance

Very Weak

Over the last 90 days OURGAME INTHOLDL 00005 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, OURGAME INTHOLDL-00005 is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Penn National and OURGAME INTHOLDL-00005

The main advantage of trading using opposite Penn National and OURGAME INTHOLDL-00005 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Penn National position performs unexpectedly, OURGAME INTHOLDL-00005 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 OURGAME INTHOLDL-00005 will offset losses from the drop in OURGAME INTHOLDL-00005's long position.

The idea behind Penn National Gaming and OURGAME INTHOLDL 00005 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.