Correlation Between PENN Entertainment, and Pure Storage,
Can any of the company-specific risk be diversified away by investing in both PENN Entertainment, and Pure Storage, 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 Pure Storage, into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PENN Entertainment, and Pure Storage,, you can compare the effects of market volatilities on PENN Entertainment, and Pure Storage, 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 Pure Storage,. Check out your portfolio center. Please also check ongoing floating volatility patterns of PENN Entertainment, and Pure Storage,.
Diversification Opportunities for PENN Entertainment, and Pure Storage,
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PENN and Pure is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding PENN Entertainment, and Pure Storage, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pure Storage, 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 Pure Storage,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pure Storage, has no effect on the direction of PENN Entertainment, i.e., PENN Entertainment, and Pure Storage, go up and down completely randomly.
Pair Corralation between PENN Entertainment, and Pure Storage,
Assuming the 90 days trading horizon PENN Entertainment, is expected to under-perform the Pure Storage,. But the stock apears to be less risky and, when comparing its historical volatility, PENN Entertainment, is 4.43 times less risky than Pure Storage,. The stock trades about -0.32 of its potential returns per unit of risk. The Pure Storage, is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 9,437 in Pure Storage, on October 11, 2024 and sell it today you would earn a total of 403.00 from holding Pure Storage, or generate 4.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
PENN Entertainment, vs. Pure Storage,
Performance |
| Timeline |
| PENN Entertainment, |
| Pure Storage, |
PENN Entertainment, and Pure Storage, Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PENN Entertainment, and Pure Storage,
The main advantage of trading using opposite PENN Entertainment, and Pure Storage, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PENN Entertainment, position performs unexpectedly, Pure Storage, 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 Pure Storage, will offset losses from the drop in Pure Storage,'s long position.| PENN Entertainment, vs. Micron Technology | PENN Entertainment, vs. Align Technology | PENN Entertainment, vs. Verizon Communications | PENN Entertainment, vs. DXC Technology |
| Pure Storage, vs. Microchip Technology Incorporated | Pure Storage, vs. Pentair plc | Pure Storage, vs. HCA Healthcare, | Pure Storage, vs. Delta Air Lines |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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