Correlation Between Penn National and GALENA MINING
Can any of the company-specific risk be diversified away by investing in both Penn National and GALENA 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 GALENA 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 GALENA MINING LTD, you can compare the effects of market volatilities on Penn National and GALENA 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 GALENA MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Penn National and GALENA MINING.
Diversification Opportunities for Penn National and GALENA MINING
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Penn and GALENA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Penn National Gaming and GALENA MINING LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GALENA 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 GALENA MINING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GALENA MINING LTD has no effect on the direction of Penn National i.e., Penn National and GALENA MINING go up and down completely randomly.
Pair Corralation between Penn National and GALENA MINING
If you would invest 1,811 in Penn National Gaming on November 7, 2024 and sell it today you would earn a total of 140.00 from holding Penn National Gaming or generate 7.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Penn National Gaming vs. GALENA MINING LTD
Performance |
| Timeline |
| Penn National Gaming |
| GALENA MINING LTD |
Penn National and GALENA MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Penn National and GALENA MINING
The main advantage of trading using opposite Penn National and GALENA MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Penn National position performs unexpectedly, GALENA 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 GALENA MINING will offset losses from the drop in GALENA MINING'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 |
| GALENA MINING vs. Boyd Gaming | GALENA MINING vs. MELIA HOTELS | GALENA MINING vs. COVIVIO HOTELS INH | GALENA MINING vs. GameStop Corp |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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