Correlation Between Penn National and JLF INVESTMENT

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Penn National and JLF INVESTMENT 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 JLF INVESTMENT 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 JLF INVESTMENT, you can compare the effects of market volatilities on Penn National and JLF INVESTMENT 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 JLF INVESTMENT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Penn National and JLF INVESTMENT.

Diversification Opportunities for Penn National and JLF INVESTMENT

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Penn and JLF is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Penn National Gaming and JLF INVESTMENT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JLF INVESTMENT 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 JLF INVESTMENT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JLF INVESTMENT has no effect on the direction of Penn National i.e., Penn National and JLF INVESTMENT go up and down completely randomly.

Pair Corralation between Penn National and JLF INVESTMENT

Assuming the 90 days horizon Penn National Gaming is expected to generate 1.56 times more return on investment than JLF INVESTMENT. However, Penn National is 1.56 times more volatile than JLF INVESTMENT. It trades about -0.01 of its potential returns per unit of risk. JLF INVESTMENT is currently generating about -0.04 per unit of risk. If you would invest  3,146  in Penn National Gaming on October 27, 2024 and sell it today you would lose (1,218) from holding Penn National Gaming or give up 38.72% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Penn National Gaming  vs.  JLF INVESTMENT

 Performance 
       Timeline  
Penn National Gaming 

Risk-Adjusted Performance

3 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Penn National Gaming are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Penn National may actually be approaching a critical reversion point that can send shares even higher in February 2025.
JLF INVESTMENT 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days JLF INVESTMENT has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, JLF INVESTMENT is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Penn National and JLF INVESTMENT Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Penn National and JLF INVESTMENT

The main advantage of trading using opposite Penn National and JLF INVESTMENT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Penn National position performs unexpectedly, JLF INVESTMENT 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 JLF INVESTMENT will offset losses from the drop in JLF INVESTMENT's long position.
The idea behind Penn National Gaming and JLF INVESTMENT 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.
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.

Other Complementary Tools

Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope
FinTech Suite
Use AI to screen and filter profitable investment opportunities
Stocks Directory
Find actively traded stocks across global markets
Equity Valuation
Check real value of public entities based on technical and fundamental data
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio