Correlation Between Penn National and UTime
Can any of the company-specific risk be diversified away by investing in both Penn National and UTime 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 UTime 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 UTime Limited, you can compare the effects of market volatilities on Penn National and UTime 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 UTime. Check out your portfolio center. Please also check ongoing floating volatility patterns of Penn National and UTime.
Diversification Opportunities for Penn National and UTime
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Penn and UTime is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Penn National Gaming and UTime Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UTime Limited 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 UTime. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UTime Limited has no effect on the direction of Penn National i.e., Penn National and UTime go up and down completely randomly.
Pair Corralation between Penn National and UTime
Given the investment horizon of 90 days Penn National Gaming is expected to generate 0.44 times more return on investment than UTime. However, Penn National Gaming is 2.3 times less risky than UTime. It trades about 0.2 of its potential returns per unit of risk. UTime Limited is currently generating about -0.26 per unit of risk. If you would invest 1,900 in Penn National Gaming on November 8, 2024 and sell it today you would earn a total of 196.00 from holding Penn National Gaming or generate 10.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Penn National Gaming vs. UTime Limited
Performance |
| Timeline |
| Penn National Gaming |
| UTime Limited |
Penn National and UTime Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Penn National and UTime
The main advantage of trading using opposite Penn National and UTime positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Penn National position performs unexpectedly, UTime 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 UTime will offset losses from the drop in UTime's long position.| Penn National vs. DraftKings | Penn National vs. MGM Resorts International | Penn National vs. Caesars Entertainment | Penn National vs. Boyd Gaming |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |