Correlation Between Penn National and SSgA
Can any of the company-specific risk be diversified away by investing in both Penn National and SSgA 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 SSgA 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 SSgA, you can compare the effects of market volatilities on Penn National and SSgA 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 SSgA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Penn National and SSgA.
Diversification Opportunities for Penn National and SSgA
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Penn and SSgA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Penn National Gaming and SSgA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SSgA 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 SSgA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SSgA has no effect on the direction of Penn National i.e., Penn National and SSgA go up and down completely randomly.
Pair Corralation between Penn National and SSgA
If you would invest 1,986 in Penn National Gaming on October 8, 2024 and sell it today you would lose (19.00) from holding Penn National Gaming or give up 0.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Penn National Gaming vs. SSgA
Performance |
| Timeline |
| Penn National Gaming |
| SSgA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Penn National and SSgA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Penn National and SSgA
The main advantage of trading using opposite Penn National and SSgA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Penn National position performs unexpectedly, SSgA 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 SSgA will offset losses from the drop in SSgA's long position.| Penn National vs. DraftKings | Penn National vs. MGM Resorts International | Penn National vs. Caesars Entertainment | Penn National vs. Boyd Gaming |
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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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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