Correlation Between PENN NATL and FANDIFI TECHNOLOGY
Can any of the company-specific risk be diversified away by investing in both PENN NATL and FANDIFI TECHNOLOGY 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 FANDIFI TECHNOLOGY 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 FANDIFI TECHNOLOGY P, you can compare the effects of market volatilities on PENN NATL and FANDIFI TECHNOLOGY 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 FANDIFI TECHNOLOGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of PENN NATL and FANDIFI TECHNOLOGY.
Diversification Opportunities for PENN NATL and FANDIFI TECHNOLOGY
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PENN and FANDIFI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PENN NATL GAMING and FANDIFI TECHNOLOGY P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FANDIFI TECHNOLOGY 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 FANDIFI TECHNOLOGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FANDIFI TECHNOLOGY has no effect on the direction of PENN NATL i.e., PENN NATL and FANDIFI TECHNOLOGY go up and down completely randomly.
Pair Corralation between PENN NATL and FANDIFI TECHNOLOGY
If you would invest 1,654 in PENN NATL GAMING on September 13, 2024 and sell it today you would earn a total of 129.00 from holding PENN NATL GAMING or generate 7.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
PENN NATL GAMING vs. FANDIFI TECHNOLOGY P
Performance |
| Timeline |
| PENN NATL GAMING |
| FANDIFI TECHNOLOGY |
PENN NATL and FANDIFI TECHNOLOGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PENN NATL and FANDIFI TECHNOLOGY
The main advantage of trading using opposite PENN NATL and FANDIFI TECHNOLOGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PENN NATL position performs unexpectedly, FANDIFI TECHNOLOGY 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 FANDIFI TECHNOLOGY will offset losses from the drop in FANDIFI TECHNOLOGY's long position.The idea behind PENN NATL GAMING and FANDIFI TECHNOLOGY P 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.| FANDIFI TECHNOLOGY vs. Salesforce | FANDIFI TECHNOLOGY vs. Superior Plus Corp | FANDIFI TECHNOLOGY vs. SIVERS SEMICONDUCTORS AB | FANDIFI TECHNOLOGY vs. Norsk Hydro ASA |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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