Correlation Between PENN NATL and WillScot Mobile
Can any of the company-specific risk be diversified away by investing in both PENN NATL and WillScot 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 WillScot 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 WillScot Mobile Mini, you can compare the effects of market volatilities on PENN NATL and WillScot 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 WillScot Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of PENN NATL and WillScot Mobile.
Diversification Opportunities for PENN NATL and WillScot Mobile
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PENN and WillScot is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding PENN NATL GAMING and WillScot Mobile Mini in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WillScot Mobile Mini 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 WillScot Mobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WillScot Mobile Mini has no effect on the direction of PENN NATL i.e., PENN NATL and WillScot Mobile go up and down completely randomly.
Pair Corralation between PENN NATL and WillScot Mobile
Assuming the 90 days trading horizon PENN NATL is expected to generate 1.49 times less return on investment than WillScot Mobile. In addition to that, PENN NATL is 2.34 times more volatile than WillScot Mobile Mini. It trades about 0.13 of its total potential returns per unit of risk. WillScot Mobile Mini is currently generating about 0.44 per unit of volatility. If you would invest 3,200 in WillScot Mobile Mini on October 23, 2024 and sell it today you would earn a total of 320.00 from holding WillScot Mobile Mini or generate 10.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 94.12% |
| Values | Daily Returns |
PENN NATL GAMING vs. WillScot Mobile Mini
Performance |
| Timeline |
| PENN NATL GAMING |
| WillScot Mobile Mini |
PENN NATL and WillScot Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PENN NATL and WillScot Mobile
The main advantage of trading using opposite PENN NATL and WillScot Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PENN NATL position performs unexpectedly, WillScot 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 WillScot Mobile will offset losses from the drop in WillScot Mobile's long position.| PENN NATL vs. ASM Pacific Technology | PENN NATL vs. Cognizant Technology Solutions | PENN NATL vs. Align Technology | PENN NATL vs. DXC Technology Co |
| WillScot Mobile vs. National Health Investors | WillScot Mobile vs. SUN LIFE FINANCIAL | WillScot Mobile vs. OPKO HEALTH | WillScot Mobile vs. WT OFFSHORE |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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