Correlation Between American Clean and Penn National
Can any of the company-specific risk be diversified away by investing in both American Clean 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 American Clean and Penn National into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Clean Resources and Penn National Gaming, you can compare the effects of market volatilities on American Clean 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 American Clean with a short position of Penn National. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Clean and Penn National.
Diversification Opportunities for American Clean and Penn National
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between American and Penn is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding American Clean Resources 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 American Clean 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 American Clean Resources 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 American Clean i.e., American Clean and Penn National go up and down completely randomly.
Pair Corralation between American Clean and Penn National
If you would invest 1,982 in Penn National Gaming on November 1, 2024 and sell it today you would earn a total of 75.50 from holding Penn National Gaming or generate 3.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
American Clean Resources vs. Penn National Gaming
Performance |
| Timeline |
| American Clean Resources |
| Penn National Gaming |
American Clean and Penn National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Clean and Penn National
The main advantage of trading using opposite American Clean and Penn National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Clean 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.| American Clean vs. Gold79 Mines | American Clean vs. Arctic Star Exploration | American Clean vs. Arras Minerals Corp | American Clean vs. American Creek Resources |
| Penn National vs. DraftKings | Penn National vs. MGM Resorts International | Penn National vs. Caesars Entertainment | Penn National vs. Boyd Gaming |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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