Correlation Between PENN NATL and CENTURIA OFFICE
Can any of the company-specific risk be diversified away by investing in both PENN NATL and CENTURIA OFFICE 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 NATL and CENTURIA OFFICE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PENN NATL GAMING and CENTURIA OFFICE REIT, you can compare the effects of market volatilities on PENN NATL and CENTURIA OFFICE 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 NATL with a short position of CENTURIA OFFICE. Check out your portfolio center. Please also check ongoing floating volatility patterns of PENN NATL and CENTURIA OFFICE.
Diversification Opportunities for PENN NATL and CENTURIA OFFICE
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PENN and CENTURIA is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding PENN NATL GAMING and CENTURIA OFFICE REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CENTURIA OFFICE REIT and PENN NATL 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 NATL GAMING are associated (or correlated) with CENTURIA OFFICE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CENTURIA OFFICE REIT has no effect on the direction of PENN NATL i.e., PENN NATL and CENTURIA OFFICE go up and down completely randomly.
Pair Corralation between PENN NATL and CENTURIA OFFICE
Assuming the 90 days trading horizon PENN NATL GAMING is expected to under-perform the CENTURIA OFFICE. In addition to that, PENN NATL is 1.79 times more volatile than CENTURIA OFFICE REIT. It trades about -0.02 of its total potential returns per unit of risk. CENTURIA OFFICE REIT is currently generating about 0.0 per unit of volatility. If you would invest 72.00 in CENTURIA OFFICE REIT on October 12, 2024 and sell it today you would lose (5.00) from holding CENTURIA OFFICE REIT or give up 6.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PENN NATL GAMING vs. CENTURIA OFFICE REIT
Performance |
| Timeline |
| PENN NATL GAMING |
| CENTURIA OFFICE REIT |
PENN NATL and CENTURIA OFFICE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PENN NATL and CENTURIA OFFICE
The main advantage of trading using opposite PENN NATL and CENTURIA OFFICE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PENN NATL position performs unexpectedly, CENTURIA OFFICE 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 CENTURIA OFFICE will offset losses from the drop in CENTURIA OFFICE's long position.| PENN NATL vs. ARDAGH METAL PACDL 0001 | PENN NATL vs. Air Transport Services | PENN NATL vs. JD SPORTS FASH | PENN NATL vs. Lamar Advertising |
| CENTURIA OFFICE vs. GAMESTOP | CENTURIA OFFICE vs. QINGCI GAMES INC | CENTURIA OFFICE vs. HOCHSCHILD MINING | CENTURIA OFFICE vs. PENN NATL 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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