Correlation Between VIRGIN WINES and Penn National
Can any of the company-specific risk be diversified away by investing in both VIRGIN WINES 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 VIRGIN WINES and Penn National into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VIRGIN WINES UK and Penn National Gaming, you can compare the effects of market volatilities on VIRGIN WINES 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 VIRGIN WINES with a short position of Penn National. Check out your portfolio center. Please also check ongoing floating volatility patterns of VIRGIN WINES and Penn National.
Diversification Opportunities for VIRGIN WINES and Penn National
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between VIRGIN and Penn is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding VIRGIN WINES UK 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 VIRGIN WINES 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 VIRGIN WINES UK 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 VIRGIN WINES i.e., VIRGIN WINES and Penn National go up and down completely randomly.
Pair Corralation between VIRGIN WINES and Penn National
If you would invest 1,830 in Penn National Gaming on August 28, 2024 and sell it today you would earn a total of 88.00 from holding Penn National Gaming or generate 4.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
VIRGIN WINES UK vs. Penn National Gaming
Performance |
| Timeline |
| VIRGIN WINES UK |
| Penn National Gaming |
VIRGIN WINES and Penn National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VIRGIN WINES and Penn National
The main advantage of trading using opposite VIRGIN WINES and Penn National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VIRGIN WINES 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.| VIRGIN WINES vs. Altia Oyj | VIRGIN WINES vs. LANSON BCC INH EO | VIRGIN WINES vs. Superior Plus Corp | VIRGIN WINES vs. NMI Holdings |
| Penn National vs. Autohome ADR | Penn National vs. Ribbon Communications | Penn National vs. Taylor Morrison Home | Penn National vs. Aedas Homes SA |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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