Correlation Between PENN NATL and MOODYS -

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both PENN NATL and MOODYS - 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 MOODYS - 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 MOODYS Dusseldorf, you can compare the effects of market volatilities on PENN NATL and MOODYS - 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 MOODYS -. Check out your portfolio center. Please also check ongoing floating volatility patterns of PENN NATL and MOODYS -.

Diversification Opportunities for PENN NATL and MOODYS -

0.66
  Correlation Coefficient

Poor diversification

The 3 months correlation between PENN and MOODYS is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding PENN NATL GAMING and MOODYS Dusseldorf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MOODYS Dusseldorf 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 MOODYS -. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MOODYS Dusseldorf has no effect on the direction of PENN NATL i.e., PENN NATL and MOODYS - go up and down completely randomly.

Pair Corralation between PENN NATL and MOODYS -

Assuming the 90 days trading horizon PENN NATL GAMING is expected to generate 1.73 times more return on investment than MOODYS -. However, PENN NATL is 1.73 times more volatile than MOODYS Dusseldorf. It trades about 0.3 of its potential returns per unit of risk. MOODYS Dusseldorf is currently generating about 0.43 per unit of risk. If you would invest  1,772  in PENN NATL GAMING on September 4, 2024 and sell it today you would earn a total of  267.00  from holding PENN NATL GAMING or generate 15.07% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

PENN NATL GAMING  vs.  MOODYS Dusseldorf

 Performance 
       Timeline  
PENN NATL GAMING 

Risk-Adjusted Performance

11 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in PENN NATL GAMING are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, PENN NATL exhibited solid returns over the last few months and may actually be approaching a breakup point.
MOODYS Dusseldorf 

Risk-Adjusted Performance

9 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in MOODYS Dusseldorf are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, MOODYS - may actually be approaching a critical reversion point that can send shares even higher in January 2025.

PENN NATL and MOODYS - Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with PENN NATL and MOODYS -

The main advantage of trading using opposite PENN NATL and MOODYS - positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PENN NATL position performs unexpectedly, MOODYS - 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 MOODYS - will offset losses from the drop in MOODYS -'s long position.
The idea behind PENN NATL GAMING and MOODYS Dusseldorf pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.

Other Complementary Tools

Portfolio Backtesting
Avoid under-diversification and over-optimization by backtesting your portfolios
Content Syndication
Quickly integrate customizable finance content to your own investment portal
FinTech Suite
Use AI to screen and filter profitable investment opportunities
Financial Widgets
Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets
Piotroski F Score
Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals