Correlation Between Penn National and Plexus Corp
Can any of the company-specific risk be diversified away by investing in both Penn National and Plexus Corp 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 National and Plexus Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Penn National Gaming and Plexus Corp, you can compare the effects of market volatilities on Penn National and Plexus Corp 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 National with a short position of Plexus Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Penn National and Plexus Corp.
Diversification Opportunities for Penn National and Plexus Corp
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Penn and Plexus is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Penn National Gaming and Plexus Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Plexus Corp and Penn National 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 National Gaming are associated (or correlated) with Plexus Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Plexus Corp has no effect on the direction of Penn National i.e., Penn National and Plexus Corp go up and down completely randomly.
Pair Corralation between Penn National and Plexus Corp
Given the investment horizon of 90 days Penn National Gaming is expected to generate 0.82 times more return on investment than Plexus Corp. However, Penn National Gaming is 1.23 times less risky than Plexus Corp. It trades about 0.31 of its potential returns per unit of risk. Plexus Corp is currently generating about -0.23 per unit of risk. If you would invest 1,829 in Penn National Gaming on November 9, 2024 and sell it today you would earn a total of 267.00 from holding Penn National Gaming or generate 14.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Penn National Gaming vs. Plexus Corp
Performance |
| Timeline |
| Penn National Gaming |
| Plexus Corp |
Penn National and Plexus Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Penn National and Plexus Corp
The main advantage of trading using opposite Penn National and Plexus Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Penn National position performs unexpectedly, Plexus Corp 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 Plexus Corp will offset losses from the drop in Plexus Corp's long position.| Penn National vs. DraftKings | Penn National vs. MGM Resorts International | Penn National vs. Caesars Entertainment | Penn National vs. Boyd Gaming |
| Plexus Corp vs. Celestica | Plexus Corp vs. Benchmark Electronics | Plexus Corp vs. Flex | Plexus Corp vs. Jabil Circuit |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |