Correlation Between MOVIE GAMES and Penn National
Can any of the company-specific risk be diversified away by investing in both MOVIE GAMES and Penn National 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 MOVIE GAMES and Penn National into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MOVIE GAMES SA and Penn National Gaming, you can compare the effects of market volatilities on MOVIE GAMES and Penn National 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 MOVIE GAMES with a short position of Penn National. Check out your portfolio center. Please also check ongoing floating volatility patterns of MOVIE GAMES and Penn National.
Diversification Opportunities for MOVIE GAMES and Penn National
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between MOVIE and Penn is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding MOVIE GAMES SA and Penn National Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Penn National Gaming and MOVIE GAMES 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 MOVIE GAMES SA are associated (or correlated) with Penn National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Penn National Gaming has no effect on the direction of MOVIE GAMES i.e., MOVIE GAMES and Penn National go up and down completely randomly.
Pair Corralation between MOVIE GAMES and Penn National
Assuming the 90 days horizon MOVIE GAMES SA is expected to generate 1.46 times more return on investment than Penn National. However, MOVIE GAMES is 1.46 times more volatile than Penn National Gaming. It trades about 0.18 of its potential returns per unit of risk. Penn National Gaming is currently generating about 0.11 per unit of risk. If you would invest 366.00 in MOVIE GAMES SA on October 29, 2024 and sell it today you would earn a total of 56.00 from holding MOVIE GAMES SA or generate 15.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MOVIE GAMES SA vs. Penn National Gaming
Performance |
| Timeline |
| MOVIE GAMES SA |
| Penn National Gaming |
MOVIE GAMES and Penn National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MOVIE GAMES and Penn National
The main advantage of trading using opposite MOVIE GAMES and Penn National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MOVIE GAMES position performs unexpectedly, Penn National 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 Penn National will offset losses from the drop in Penn National's long position.| MOVIE GAMES vs. United Insurance Holdings | MOVIE GAMES vs. VIENNA INSURANCE GR | MOVIE GAMES vs. CAL MAINE FOODS | MOVIE GAMES vs. Nomad Foods |
| Penn National vs. Las Vegas Sands | Penn National vs. Galaxy Entertainment Group | Penn National vs. Sands China | Penn National vs. MGM Resorts International |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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