Correlation Between PENN Entertainment, and MAHLE Metal
Can any of the company-specific risk be diversified away by investing in both PENN Entertainment, and MAHLE Metal 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 PENN Entertainment, and MAHLE Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PENN Entertainment, and MAHLE Metal Leve, you can compare the effects of market volatilities on PENN Entertainment, and MAHLE Metal 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 PENN Entertainment, with a short position of MAHLE Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of PENN Entertainment, and MAHLE Metal.
Diversification Opportunities for PENN Entertainment, and MAHLE Metal
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PENN and MAHLE is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding PENN Entertainment, and MAHLE Metal Leve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MAHLE Metal Leve and PENN Entertainment, 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 PENN Entertainment, are associated (or correlated) with MAHLE Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MAHLE Metal Leve has no effect on the direction of PENN Entertainment, i.e., PENN Entertainment, and MAHLE Metal go up and down completely randomly.
Pair Corralation between PENN Entertainment, and MAHLE Metal
If you would invest 2,663 in MAHLE Metal Leve on November 7, 2024 and sell it today you would earn a total of 172.00 from holding MAHLE Metal Leve or generate 6.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
PENN Entertainment, vs. MAHLE Metal Leve
Performance |
| Timeline |
| PENN Entertainment, |
| MAHLE Metal Leve |
PENN Entertainment, and MAHLE Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PENN Entertainment, and MAHLE Metal
The main advantage of trading using opposite PENN Entertainment, and MAHLE Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PENN Entertainment, position performs unexpectedly, MAHLE Metal 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 MAHLE Metal will offset losses from the drop in MAHLE Metal's long position.| PENN Entertainment, vs. Ryanair Holdings plc | PENN Entertainment, vs. Vulcan Materials | PENN Entertainment, vs. Fair Isaac | PENN Entertainment, vs. Verizon Communications |
| MAHLE Metal vs. PBG SA | MAHLE Metal vs. Guararapes Confeces SA | MAHLE Metal vs. Tupy SA | MAHLE Metal vs. Grendene SA |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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