Correlation Between Coloplast and Penn National
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By analyzing existing cross correlation between Coloplast AS and Penn National Gaming, you can compare the effects of market volatilities on Coloplast 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 Coloplast with a short position of Penn National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coloplast and Penn National.
Diversification Opportunities for Coloplast and Penn National
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Coloplast and Penn is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Coloplast AS 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 Coloplast 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 Coloplast AS 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 Coloplast i.e., Coloplast and Penn National go up and down completely randomly.
Pair Corralation between Coloplast and Penn National
Assuming the 90 days trading horizon Coloplast AS is expected to generate 0.73 times more return on investment than Penn National. However, Coloplast AS is 1.37 times less risky than Penn National. It trades about 0.08 of its potential returns per unit of risk. Penn National Gaming is currently generating about 0.0 per unit of risk. If you would invest 6,948 in Coloplast AS on September 14, 2024 and sell it today you would earn a total of 4,137 from holding Coloplast AS or generate 59.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.64% |
| Values | Daily Returns |
Coloplast AS vs. Penn National Gaming
Performance |
| Timeline |
| Coloplast AS |
| Penn National Gaming |
Coloplast and Penn National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coloplast and Penn National
The main advantage of trading using opposite Coloplast and Penn National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coloplast 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.| Coloplast vs. Penn National Gaming | Coloplast vs. Playtech plc | Coloplast vs. GAMESTOP | Coloplast vs. QINGCI GAMES INC |
| Penn National vs. Superior Plus Corp | Penn National vs. SIVERS SEMICONDUCTORS AB | Penn National vs. Norsk Hydro ASA | Penn National vs. Reliance Steel Aluminum |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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