Correlation Between Nisshinbo Holdings and PENN NATL
Can any of the company-specific risk be diversified away by investing in both Nisshinbo Holdings and PENN NATL 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 Nisshinbo Holdings and PENN NATL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nisshinbo Holdings and PENN NATL GAMING, you can compare the effects of market volatilities on Nisshinbo Holdings and PENN NATL 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 Nisshinbo Holdings with a short position of PENN NATL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nisshinbo Holdings and PENN NATL.
Diversification Opportunities for Nisshinbo Holdings and PENN NATL
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nisshinbo and PENN is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Nisshinbo Holdings and PENN NATL GAMING in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PENN NATL GAMING and Nisshinbo Holdings 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 Nisshinbo Holdings are associated (or correlated) with PENN NATL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PENN NATL GAMING has no effect on the direction of Nisshinbo Holdings i.e., Nisshinbo Holdings and PENN NATL go up and down completely randomly.
Pair Corralation between Nisshinbo Holdings and PENN NATL
Assuming the 90 days trading horizon Nisshinbo Holdings is expected to generate 0.32 times more return on investment than PENN NATL. However, Nisshinbo Holdings is 3.13 times less risky than PENN NATL. It trades about -0.18 of its potential returns per unit of risk. PENN NATL GAMING is currently generating about -0.13 per unit of risk. If you would invest 535.00 in Nisshinbo Holdings on September 25, 2024 and sell it today you would lose (20.00) from holding Nisshinbo Holdings or give up 3.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nisshinbo Holdings vs. PENN NATL GAMING
Performance |
| Timeline |
| Nisshinbo Holdings |
| PENN NATL GAMING |
Nisshinbo Holdings and PENN NATL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nisshinbo Holdings and PENN NATL
The main advantage of trading using opposite Nisshinbo Holdings and PENN NATL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nisshinbo Holdings position performs unexpectedly, PENN NATL 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 NATL will offset losses from the drop in PENN NATL's long position.| Nisshinbo Holdings vs. PENN NATL GAMING | Nisshinbo Holdings vs. Sunny Optical Technology | Nisshinbo Holdings vs. Computer And Technologies | Nisshinbo Holdings vs. Vishay Intertechnology |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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