Correlation Between Penn National and EAST SIDE
Can any of the company-specific risk be diversified away by investing in both Penn National and EAST SIDE 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 EAST SIDE 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 EAST SIDE GAMES, you can compare the effects of market volatilities on Penn National and EAST SIDE 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 EAST SIDE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Penn National and EAST SIDE.
Diversification Opportunities for Penn National and EAST SIDE
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Penn and EAST is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Penn National Gaming and EAST SIDE GAMES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EAST SIDE GAMES 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 EAST SIDE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EAST SIDE GAMES has no effect on the direction of Penn National i.e., Penn National and EAST SIDE go up and down completely randomly.
Pair Corralation between Penn National and EAST SIDE
Assuming the 90 days horizon Penn National Gaming is expected to generate 0.44 times more return on investment than EAST SIDE. However, Penn National Gaming is 2.28 times less risky than EAST SIDE. It trades about -0.04 of its potential returns per unit of risk. EAST SIDE GAMES is currently generating about -0.02 per unit of risk. If you would invest 1,781 in Penn National Gaming on December 26, 2024 and sell it today you would lose (181.00) from holding Penn National Gaming or give up 10.16% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Penn National Gaming vs. EAST SIDE GAMES
Performance |
Timeline |
Penn National Gaming |
EAST SIDE GAMES |
Penn National and EAST SIDE Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Penn National and EAST SIDE
The main advantage of trading using opposite Penn National and EAST SIDE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Penn National position performs unexpectedly, EAST SIDE 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 EAST SIDE will offset losses from the drop in EAST SIDE's long position.Penn National vs. ARDAGH METAL PACDL 0001 | Penn National vs. GREENX METALS LTD | Penn National vs. GOLDQUEST MINING | Penn National vs. Verizon Communications |
EAST SIDE vs. China BlueChemical | EAST SIDE vs. Air Lease | EAST SIDE vs. ALBIS LEASING AG | EAST SIDE vs. SILICON LABORATOR |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |