Correlation Between GRENKELEASING and PENN Entertainment
Can any of the company-specific risk be diversified away by investing in both GRENKELEASING 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 GRENKELEASING and PENN Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GRENKELEASING Dusseldorf and PENN Entertainment, you can compare the effects of market volatilities on GRENKELEASING 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 GRENKELEASING with a short position of PENN Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRENKELEASING and PENN Entertainment.
Diversification Opportunities for GRENKELEASING and PENN Entertainment
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GRENKELEASING and PENN is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding GRENKELEASING Dusseldorf and PENN Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PENN Entertainment and GRENKELEASING 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 GRENKELEASING Dusseldorf 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 GRENKELEASING i.e., GRENKELEASING and PENN Entertainment go up and down completely randomly.
Pair Corralation between GRENKELEASING and PENN Entertainment
Assuming the 90 days trading horizon GRENKELEASING Dusseldorf is expected to generate 0.57 times more return on investment than PENN Entertainment. However, GRENKELEASING Dusseldorf is 1.76 times less risky than PENN Entertainment. It trades about 0.16 of its potential returns per unit of risk. PENN Entertainment is currently generating about 0.07 per unit of risk. If you would invest 1,564 in GRENKELEASING Dusseldorf on October 16, 2024 and sell it today you would earn a total of 86.00 from holding GRENKELEASING Dusseldorf or generate 5.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GRENKELEASING Dusseldorf vs. PENN Entertainment
Performance |
| Timeline |
| GRENKELEASING Duss |
| PENN Entertainment |
GRENKELEASING and PENN Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRENKELEASING and PENN Entertainment
The main advantage of trading using opposite GRENKELEASING and PENN Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRENKELEASING 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.| GRENKELEASING vs. Entravision Communications | GRENKELEASING vs. TOWNSQUARE MEDIA INC | GRENKELEASING vs. INTERSHOP Communications Aktiengesellschaft | GRENKELEASING vs. Shenandoah Telecommunications |
| PENN Entertainment vs. Information Services International Dentsu | PENN Entertainment vs. Data Modul AG | PENN Entertainment vs. SILVER BULLET DATA | PENN Entertainment vs. CONTAGIOUS GAMING INC |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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