Correlation Between ANTA SPORTS and PENN Entertainment
Can any of the company-specific risk be diversified away by investing in both ANTA SPORTS and PENN Entertainment 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 ANTA SPORTS and PENN Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ANTA SPORTS PRODUCT and PENN Entertainment, you can compare the effects of market volatilities on ANTA SPORTS and PENN Entertainment 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 ANTA SPORTS with a short position of PENN Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANTA SPORTS and PENN Entertainment.
Diversification Opportunities for ANTA SPORTS and PENN Entertainment
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between ANTA and PENN is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding ANTA SPORTS PRODUCT and PENN Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PENN Entertainment and ANTA SPORTS 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 ANTA SPORTS PRODUCT are associated (or correlated) with PENN Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PENN Entertainment has no effect on the direction of ANTA SPORTS i.e., ANTA SPORTS and PENN Entertainment go up and down completely randomly.
Pair Corralation between ANTA SPORTS and PENN Entertainment
Assuming the 90 days trading horizon ANTA SPORTS is expected to generate 1.12 times less return on investment than PENN Entertainment. But when comparing it to its historical volatility, ANTA SPORTS PRODUCT is 1.47 times less risky than PENN Entertainment. It trades about 0.2 of its potential returns per unit of risk. PENN Entertainment is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 1,799 in PENN Entertainment on November 4, 2024 and sell it today you would earn a total of 164.00 from holding PENN Entertainment or generate 9.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ANTA SPORTS PRODUCT vs. PENN Entertainment
Performance |
| Timeline |
| ANTA SPORTS PRODUCT |
| PENN Entertainment |
ANTA SPORTS and PENN Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANTA SPORTS and PENN Entertainment
The main advantage of trading using opposite ANTA SPORTS and PENN Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANTA SPORTS position performs unexpectedly, PENN Entertainment 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 Entertainment will offset losses from the drop in PENN Entertainment's long position.| ANTA SPORTS vs. KENEDIX OFFICE INV | ANTA SPORTS vs. DFS Furniture PLC | ANTA SPORTS vs. CLEAN ENERGY FUELS | ANTA SPORTS vs. The Home Depot |
| PENN Entertainment vs. MARKET VECTR RETAIL | PENN Entertainment vs. ATRESMEDIA | PENN Entertainment vs. G III Apparel Group | PENN Entertainment vs. COSTCO WHOLESALE CDR |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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