Correlation Between WESANA HEALTH and PENN Entertainment
Can any of the company-specific risk be diversified away by investing in both WESANA HEALTH 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 WESANA HEALTH and PENN Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WESANA HEALTH HOLD and PENN Entertainment, you can compare the effects of market volatilities on WESANA HEALTH 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 WESANA HEALTH with a short position of PENN Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of WESANA HEALTH and PENN Entertainment.
Diversification Opportunities for WESANA HEALTH and PENN Entertainment
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between WESANA and PENN is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding WESANA HEALTH HOLD and PENN Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PENN Entertainment and WESANA HEALTH 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 WESANA HEALTH HOLD 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 WESANA HEALTH i.e., WESANA HEALTH and PENN Entertainment go up and down completely randomly.
Pair Corralation between WESANA HEALTH and PENN Entertainment
If you would invest 1,859 in PENN Entertainment on November 8, 2024 and sell it today you would earn a total of 138.00 from holding PENN Entertainment or generate 7.42% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 91.3% |
Values | Daily Returns |
WESANA HEALTH HOLD vs. PENN Entertainment
Performance |
Timeline |
WESANA HEALTH HOLD |
PENN Entertainment |
WESANA HEALTH and PENN Entertainment Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with WESANA HEALTH and PENN Entertainment
The main advantage of trading using opposite WESANA HEALTH and PENN Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WESANA HEALTH 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.WESANA HEALTH vs. Wyndham Hotels Resorts | WESANA HEALTH vs. MHP Hotel AG | WESANA HEALTH vs. Xenia Hotels Resorts | WESANA HEALTH vs. Medical Properties Trust |
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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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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