Correlation Between TROPHY GAMES and PENN NATL
Can any of the company-specific risk be diversified away by investing in both TROPHY GAMES and PENN NATL 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 TROPHY GAMES and PENN NATL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TROPHY GAMES DEV and PENN NATL GAMING, you can compare the effects of market volatilities on TROPHY GAMES and PENN NATL 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 TROPHY GAMES with a short position of PENN NATL. Check out your portfolio center. Please also check ongoing floating volatility patterns of TROPHY GAMES and PENN NATL.
Diversification Opportunities for TROPHY GAMES and PENN NATL
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between TROPHY and PENN is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding TROPHY GAMES DEV and PENN NATL GAMING in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PENN NATL GAMING and TROPHY 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 TROPHY GAMES DEV are associated (or correlated) with PENN NATL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PENN NATL GAMING has no effect on the direction of TROPHY GAMES i.e., TROPHY GAMES and PENN NATL go up and down completely randomly.
Pair Corralation between TROPHY GAMES and PENN NATL
Assuming the 90 days horizon TROPHY GAMES DEV is expected to under-perform the PENN NATL. In addition to that, TROPHY GAMES is 1.01 times more volatile than PENN NATL GAMING. It trades about -0.17 of its total potential returns per unit of risk. PENN NATL GAMING is currently generating about 0.18 per unit of volatility. If you would invest 1,832 in PENN NATL GAMING on August 30, 2024 and sell it today you would earn a total of 184.00 from holding PENN NATL GAMING or generate 10.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TROPHY GAMES DEV vs. PENN NATL GAMING
Performance |
| Timeline |
| TROPHY GAMES DEV |
| PENN NATL GAMING |
TROPHY GAMES and PENN NATL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TROPHY GAMES and PENN NATL
The main advantage of trading using opposite TROPHY GAMES and PENN NATL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TROPHY GAMES position performs unexpectedly, PENN NATL 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 NATL will offset losses from the drop in PENN NATL's long position.| TROPHY GAMES vs. Sea Limited | TROPHY GAMES vs. Superior Plus Corp | TROPHY GAMES vs. NMI Holdings | TROPHY GAMES vs. SIVERS SEMICONDUCTORS AB |
| PENN NATL vs. Apple Inc | PENN NATL vs. Apple Inc | PENN NATL vs. Superior Plus Corp | PENN NATL vs. SIVERS SEMICONDUCTORS AB |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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