Correlation Between PENN NATL and SOCKET MOBILE
Can any of the company-specific risk be diversified away by investing in both PENN NATL and SOCKET MOBILE 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 SOCKET MOBILE 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 SOCKET MOBILE NEW, you can compare the effects of market volatilities on PENN NATL and SOCKET MOBILE 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 SOCKET MOBILE. Check out your portfolio center. Please also check ongoing floating volatility patterns of PENN NATL and SOCKET MOBILE.
Diversification Opportunities for PENN NATL and SOCKET MOBILE
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between PENN and SOCKET is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding PENN NATL GAMING and SOCKET MOBILE NEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SOCKET MOBILE NEW 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 SOCKET MOBILE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SOCKET MOBILE NEW has no effect on the direction of PENN NATL i.e., PENN NATL and SOCKET MOBILE go up and down completely randomly.
Pair Corralation between PENN NATL and SOCKET MOBILE
Assuming the 90 days trading horizon PENN NATL GAMING is expected to under-perform the SOCKET MOBILE. But the stock apears to be less risky and, when comparing its historical volatility, PENN NATL GAMING is 1.04 times less risky than SOCKET MOBILE. The stock trades about 0.0 of its potential returns per unit of risk. The SOCKET MOBILE NEW is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 164.00 in SOCKET MOBILE NEW on November 3, 2024 and sell it today you would lose (28.00) from holding SOCKET MOBILE NEW or give up 17.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.78% |
| Values | Daily Returns |
PENN NATL GAMING vs. SOCKET MOBILE NEW
Performance |
| Timeline |
| PENN NATL GAMING |
| SOCKET MOBILE NEW |
PENN NATL and SOCKET MOBILE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PENN NATL and SOCKET MOBILE
The main advantage of trading using opposite PENN NATL and SOCKET MOBILE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PENN NATL position performs unexpectedly, SOCKET MOBILE 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 SOCKET MOBILE will offset losses from the drop in SOCKET MOBILE's long position.| PENN NATL vs. MAVEN WIRELESS SWEDEN | PENN NATL vs. Virtu Financial | PENN NATL vs. SOCKET MOBILE NEW | PENN NATL vs. Geely Automobile Holdings |
| SOCKET MOBILE vs. Siemens Healthineers AG | SOCKET MOBILE vs. SHIP HEALTHCARE HLDGINC | SOCKET MOBILE vs. Erste Group Bank | SOCKET MOBILE vs. Webster Financial |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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