Correlation Between PENN NATL and Gruppo Mutuionline
Can any of the company-specific risk be diversified away by investing in both PENN NATL and Gruppo Mutuionline 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 Gruppo Mutuionline 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 Gruppo Mutuionline SpA, you can compare the effects of market volatilities on PENN NATL and Gruppo Mutuionline 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 Gruppo Mutuionline. Check out your portfolio center. Please also check ongoing floating volatility patterns of PENN NATL and Gruppo Mutuionline.
Diversification Opportunities for PENN NATL and Gruppo Mutuionline
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PENN and Gruppo is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding PENN NATL GAMING and Gruppo Mutuionline SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gruppo Mutuionline SpA 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 Gruppo Mutuionline. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gruppo Mutuionline SpA has no effect on the direction of PENN NATL i.e., PENN NATL and Gruppo Mutuionline go up and down completely randomly.
Pair Corralation between PENN NATL and Gruppo Mutuionline
Assuming the 90 days trading horizon PENN NATL GAMING is expected to generate 1.72 times more return on investment than Gruppo Mutuionline. However, PENN NATL is 1.72 times more volatile than Gruppo Mutuionline SpA. It trades about -0.01 of its potential returns per unit of risk. Gruppo Mutuionline SpA is currently generating about -0.23 per unit of risk. If you would invest 1,783 in PENN NATL GAMING on October 12, 2024 and sell it today you would lose (23.00) from holding PENN NATL GAMING or give up 1.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
PENN NATL GAMING vs. Gruppo Mutuionline SpA
Performance |
| Timeline |
| PENN NATL GAMING |
| Gruppo Mutuionline SpA |
PENN NATL and Gruppo Mutuionline Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PENN NATL and Gruppo Mutuionline
The main advantage of trading using opposite PENN NATL and Gruppo Mutuionline positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PENN NATL position performs unexpectedly, Gruppo Mutuionline 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 Gruppo Mutuionline will offset losses from the drop in Gruppo Mutuionline'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 |
| Gruppo Mutuionline vs. Guangdong Investment Limited | Gruppo Mutuionline vs. PENN NATL GAMING | Gruppo Mutuionline vs. SLR Investment Corp | Gruppo Mutuionline vs. DETALION GAMES SA |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Commodity Directory Find actively traded commodities issued by global exchanges |