Correlation Between DETALION GAMES and Penn National
Can any of the company-specific risk be diversified away by investing in both DETALION 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 DETALION 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 DETALION GAMES SA and Penn National Gaming, you can compare the effects of market volatilities on DETALION 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 DETALION GAMES with a short position of Penn National. Check out your portfolio center. Please also check ongoing floating volatility patterns of DETALION GAMES and Penn National.
Diversification Opportunities for DETALION GAMES and Penn National
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between DETALION and Penn is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding DETALION 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 DETALION 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 DETALION 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 DETALION GAMES i.e., DETALION GAMES and Penn National go up and down completely randomly.
Pair Corralation between DETALION GAMES and Penn National
Assuming the 90 days horizon DETALION GAMES SA is expected to under-perform the Penn National. In addition to that, DETALION GAMES is 1.07 times more volatile than Penn National Gaming. It trades about -0.01 of its total potential returns per unit of risk. Penn National Gaming is currently generating about 0.01 per unit of volatility. If you would invest 2,186 in Penn National Gaming on October 20, 2024 and sell it today you would lose (191.00) from holding Penn National Gaming or give up 8.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DETALION GAMES SA vs. Penn National Gaming
Performance |
| Timeline |
| DETALION GAMES SA |
| Penn National Gaming |
DETALION GAMES and Penn National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DETALION GAMES and Penn National
The main advantage of trading using opposite DETALION GAMES and Penn National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DETALION 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.| DETALION GAMES vs. Sanyo Chemical Industries | DETALION GAMES vs. Mitsui Chemicals | DETALION GAMES vs. Yuexiu Transport Infrastructure | DETALION GAMES vs. KINGBOARD CHEMICAL |
| Penn National vs. GEELY AUTOMOBILE | Penn National vs. WillScot Mobile Mini | Penn National vs. Ribbon Communications | Penn National vs. T Mobile |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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