Correlation Between Penn National and GRIFFIN MINING
Can any of the company-specific risk be diversified away by investing in both Penn National and GRIFFIN MINING 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 GRIFFIN MINING 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 GRIFFIN MINING LTD, you can compare the effects of market volatilities on Penn National and GRIFFIN MINING 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 GRIFFIN MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Penn National and GRIFFIN MINING.
Diversification Opportunities for Penn National and GRIFFIN MINING
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Penn and GRIFFIN is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Penn National Gaming and GRIFFIN MINING LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRIFFIN MINING LTD 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 GRIFFIN MINING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRIFFIN MINING LTD has no effect on the direction of Penn National i.e., Penn National and GRIFFIN MINING go up and down completely randomly.
Pair Corralation between Penn National and GRIFFIN MINING
Assuming the 90 days horizon Penn National Gaming is expected to under-perform the GRIFFIN MINING. In addition to that, Penn National is 1.68 times more volatile than GRIFFIN MINING LTD. It trades about -0.01 of its total potential returns per unit of risk. GRIFFIN MINING LTD is currently generating about 0.1 per unit of volatility. If you would invest 81.00 in GRIFFIN MINING LTD on August 24, 2024 and sell it today you would earn a total of 91.00 from holding GRIFFIN MINING LTD or generate 112.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Penn National Gaming vs. GRIFFIN MINING LTD
Performance |
| Timeline |
| Penn National Gaming |
| GRIFFIN MINING LTD |
Penn National and GRIFFIN MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Penn National and GRIFFIN MINING
The main advantage of trading using opposite Penn National and GRIFFIN MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Penn National position performs unexpectedly, GRIFFIN MINING 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 GRIFFIN MINING will offset losses from the drop in GRIFFIN MINING's long position.| Penn National vs. Superior Plus Corp | Penn National vs. NMI Holdings | Penn National vs. Origin Agritech | Penn National vs. SIVERS SEMICONDUCTORS AB |
| GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |