Correlation Between Khiron Life and PENN NATL
Can any of the company-specific risk be diversified away by investing in both Khiron Life 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 Khiron Life and PENN NATL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Khiron Life Sciences and PENN NATL GAMING, you can compare the effects of market volatilities on Khiron Life 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 Khiron Life with a short position of PENN NATL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Khiron Life and PENN NATL.
Diversification Opportunities for Khiron Life and PENN NATL
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Khiron and PENN is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Khiron Life Sciences 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 Khiron Life 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 Khiron Life Sciences 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 Khiron Life i.e., Khiron Life and PENN NATL go up and down completely randomly.
Pair Corralation between Khiron Life and PENN NATL
If you would invest 1,805 in PENN NATL GAMING on November 5, 2024 and sell it today you would earn a total of 158.00 from holding PENN NATL GAMING or generate 8.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Khiron Life Sciences vs. PENN NATL GAMING
Performance |
| Timeline |
| Khiron Life Sciences |
| PENN NATL GAMING |
Khiron Life and PENN NATL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Khiron Life and PENN NATL
The main advantage of trading using opposite Khiron Life and PENN NATL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Khiron Life 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.| Khiron Life vs. Salesforce | Khiron Life vs. MCEWEN MINING INC | Khiron Life vs. SALESFORCE INC CDR | Khiron Life vs. GungHo Online Entertainment |
| PENN NATL vs. Fidelity National Information | PENN NATL vs. INFORMATION SVC GRP | PENN NATL vs. X FAB Silicon Foundries | PENN NATL vs. Sekisui Chemical Co |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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