Correlation Between Penn National and PLAYWAY SA
Can any of the company-specific risk be diversified away by investing in both Penn National and PLAYWAY SA 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 National and PLAYWAY SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Penn National Gaming and PLAYWAY SA ZY 10, you can compare the effects of market volatilities on Penn National and PLAYWAY SA 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 National with a short position of PLAYWAY SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Penn National and PLAYWAY SA.
Diversification Opportunities for Penn National and PLAYWAY SA
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Penn and PLAYWAY is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Penn National Gaming and PLAYWAY SA ZY 10 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PLAYWAY SA ZY and Penn National 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 National Gaming are associated (or correlated) with PLAYWAY SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PLAYWAY SA ZY has no effect on the direction of Penn National i.e., Penn National and PLAYWAY SA go up and down completely randomly.
Pair Corralation between Penn National and PLAYWAY SA
Assuming the 90 days horizon Penn National is expected to generate 1.29 times less return on investment than PLAYWAY SA. In addition to that, Penn National is 1.06 times more volatile than PLAYWAY SA ZY 10. It trades about 0.15 of its total potential returns per unit of risk. PLAYWAY SA ZY 10 is currently generating about 0.2 per unit of volatility. If you would invest 6,560 in PLAYWAY SA ZY 10 on November 7, 2024 and sell it today you would earn a total of 680.00 from holding PLAYWAY SA ZY 10 or generate 10.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Penn National Gaming vs. PLAYWAY SA ZY 10
Performance |
| Timeline |
| Penn National Gaming |
| PLAYWAY SA ZY |
Penn National and PLAYWAY SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Penn National and PLAYWAY SA
The main advantage of trading using opposite Penn National and PLAYWAY SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Penn National position performs unexpectedly, PLAYWAY SA 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 PLAYWAY SA will offset losses from the drop in PLAYWAY SA's long position.| Penn National vs. Compugroup Medical SE | Penn National vs. Medical Properties Trust | Penn National vs. Genertec Universal Medical | Penn National vs. Peijia Medical Limited |
| PLAYWAY SA vs. Nintendo Co | PLAYWAY SA vs. Nintendo Co | PLAYWAY SA vs. Sea Limited | PLAYWAY SA vs. Electronic Arts |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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