Correlation Between Penn National and YHN Acquisition
Can any of the company-specific risk be diversified away by investing in both Penn National and YHN Acquisition 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 YHN Acquisition 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 YHN Acquisition I, you can compare the effects of market volatilities on Penn National and YHN Acquisition 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 YHN Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Penn National and YHN Acquisition.
Diversification Opportunities for Penn National and YHN Acquisition
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Penn and YHN is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Penn National Gaming and YHN Acquisition I in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YHN Acquisition I 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 YHN Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YHN Acquisition I has no effect on the direction of Penn National i.e., Penn National and YHN Acquisition go up and down completely randomly.
Pair Corralation between Penn National and YHN Acquisition
Given the investment horizon of 90 days Penn National Gaming is expected to under-perform the YHN Acquisition. In addition to that, Penn National is 12.11 times more volatile than YHN Acquisition I. It trades about -0.11 of its total potential returns per unit of risk. YHN Acquisition I is currently generating about 0.1 per unit of volatility. If you would invest 1,012 in YHN Acquisition I on October 14, 2024 and sell it today you would earn a total of 3.00 from holding YHN Acquisition I or generate 0.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 57.89% |
| Values | Daily Returns |
Penn National Gaming vs. YHN Acquisition I
Performance |
| Timeline |
| Penn National Gaming |
| YHN Acquisition I |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
Penn National and YHN Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Penn National and YHN Acquisition
The main advantage of trading using opposite Penn National and YHN Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Penn National position performs unexpectedly, YHN Acquisition 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 YHN Acquisition will offset losses from the drop in YHN Acquisition's long position.| Penn National vs. DraftKings | Penn National vs. MGM Resorts International | Penn National vs. Caesars Entertainment | Penn National vs. Boyd Gaming |
| YHN Acquisition vs. Paysafe | YHN Acquisition vs. Games Workshop Group | YHN Acquisition vs. NetEase | YHN Acquisition vs. Penn National 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |