Correlation Between Penn National and FUYO GENERAL
Can any of the company-specific risk be diversified away by investing in both Penn National and FUYO GENERAL 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 FUYO GENERAL 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 FUYO GENERAL LEASE, you can compare the effects of market volatilities on Penn National and FUYO GENERAL 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 FUYO GENERAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Penn National and FUYO GENERAL.
Diversification Opportunities for Penn National and FUYO GENERAL
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Penn and FUYO is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Penn National Gaming and FUYO GENERAL LEASE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FUYO GENERAL LEASE 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 FUYO GENERAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FUYO GENERAL LEASE has no effect on the direction of Penn National i.e., Penn National and FUYO GENERAL go up and down completely randomly.
Pair Corralation between Penn National and FUYO GENERAL
Assuming the 90 days horizon Penn National Gaming is expected to under-perform the FUYO GENERAL. In addition to that, Penn National is 2.34 times more volatile than FUYO GENERAL LEASE. It trades about -0.1 of its total potential returns per unit of risk. FUYO GENERAL LEASE is currently generating about 0.02 per unit of volatility. If you would invest 7,000 in FUYO GENERAL LEASE on December 18, 2024 and sell it today you would earn a total of 50.00 from holding FUYO GENERAL LEASE or generate 0.71% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Penn National Gaming vs. FUYO GENERAL LEASE
Performance |
Timeline |
Penn National Gaming |
FUYO GENERAL LEASE |
Penn National and FUYO GENERAL Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Penn National and FUYO GENERAL
The main advantage of trading using opposite Penn National and FUYO GENERAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Penn National position performs unexpectedly, FUYO GENERAL 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 FUYO GENERAL will offset losses from the drop in FUYO GENERAL's long position.Penn National vs. Jupiter Fund Management | Penn National vs. Waste Management | Penn National vs. Diversified Healthcare Trust | Penn National vs. Coor Service Management |
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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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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