Correlation Between PENN NATL and DETALION GAMES
Can any of the company-specific risk be diversified away by investing in both PENN NATL and DETALION GAMES 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 DETALION GAMES 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 DETALION GAMES SA, you can compare the effects of market volatilities on PENN NATL and DETALION GAMES 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 DETALION GAMES. Check out your portfolio center. Please also check ongoing floating volatility patterns of PENN NATL and DETALION GAMES.
Diversification Opportunities for PENN NATL and DETALION GAMES
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between PENN and DETALION is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding PENN NATL GAMING and DETALION GAMES SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DETALION GAMES SA 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 DETALION GAMES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DETALION GAMES SA has no effect on the direction of PENN NATL i.e., PENN NATL and DETALION GAMES go up and down completely randomly.
Pair Corralation between PENN NATL and DETALION GAMES
Assuming the 90 days trading horizon PENN NATL is expected to generate 3.15 times less return on investment than DETALION GAMES. But when comparing it to its historical volatility, PENN NATL GAMING is 1.45 times less risky than DETALION GAMES. It trades about 0.13 of its potential returns per unit of risk. DETALION GAMES SA is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 18.00 in DETALION GAMES SA on October 23, 2024 and sell it today you would earn a total of 4.00 from holding DETALION GAMES SA or generate 22.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PENN NATL GAMING vs. DETALION GAMES SA
Performance |
| Timeline |
| PENN NATL GAMING |
| DETALION GAMES SA |
PENN NATL and DETALION GAMES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PENN NATL and DETALION GAMES
The main advantage of trading using opposite PENN NATL and DETALION GAMES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PENN NATL position performs unexpectedly, DETALION GAMES 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 DETALION GAMES will offset losses from the drop in DETALION GAMES's long position.| PENN NATL vs. ASM Pacific Technology | PENN NATL vs. Cognizant Technology Solutions | PENN NATL vs. Align Technology | PENN NATL vs. DXC Technology Co |
| DETALION GAMES vs. G III Apparel Group | DETALION GAMES vs. Hua Hong Semiconductor | DETALION GAMES vs. Guangdong Investment Limited | DETALION GAMES vs. Apollo Investment Corp |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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