Correlation Between PENN NATL and Chuangs China
Can any of the company-specific risk be diversified away by investing in both PENN NATL and Chuangs China 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 Chuangs China 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 Chuangs China Investments, you can compare the effects of market volatilities on PENN NATL and Chuangs China 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 Chuangs China. Check out your portfolio center. Please also check ongoing floating volatility patterns of PENN NATL and Chuangs China.
Diversification Opportunities for PENN NATL and Chuangs China
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between PENN and Chuangs is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding PENN NATL GAMING and Chuangs China Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chuangs China Investments 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 Chuangs China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chuangs China Investments has no effect on the direction of PENN NATL i.e., PENN NATL and Chuangs China go up and down completely randomly.
Pair Corralation between PENN NATL and Chuangs China
If you would invest 1,905 in PENN NATL GAMING on August 31, 2024 and sell it today you would earn a total of 81.00 from holding PENN NATL GAMING or generate 4.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PENN NATL GAMING vs. Chuangs China Investments
Performance |
| Timeline |
| PENN NATL GAMING |
| Chuangs China Investments |
PENN NATL and Chuangs China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PENN NATL and Chuangs China
The main advantage of trading using opposite PENN NATL and Chuangs China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PENN NATL position performs unexpectedly, Chuangs China 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 Chuangs China will offset losses from the drop in Chuangs China's long position.| PENN NATL vs. SERI INDUSTRIAL EO | PENN NATL vs. Arrow Electronics | PENN NATL vs. KIMBALL ELECTRONICS | PENN NATL vs. MCEWEN MINING INC |
| Chuangs China vs. Sun Hung Kai | Chuangs China vs. China Overseas Land | Chuangs China vs. CHINA VANKE TD | Chuangs China vs. Longfor Group Holdings |
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.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |