Correlation Between Penn National and METTLER TOLEDO
Can any of the company-specific risk be diversified away by investing in both Penn National and METTLER TOLEDO 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 METTLER TOLEDO 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 METTLER TOLEDO INTL, you can compare the effects of market volatilities on Penn National and METTLER TOLEDO 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 METTLER TOLEDO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Penn National and METTLER TOLEDO.
Diversification Opportunities for Penn National and METTLER TOLEDO
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Penn and METTLER is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Penn National Gaming and METTLER TOLEDO INTL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on METTLER TOLEDO INTL 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 METTLER TOLEDO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of METTLER TOLEDO INTL has no effect on the direction of Penn National i.e., Penn National and METTLER TOLEDO go up and down completely randomly.
Pair Corralation between Penn National and METTLER TOLEDO
Assuming the 90 days horizon Penn National Gaming is expected to under-perform the METTLER TOLEDO. In addition to that, Penn National is 1.78 times more volatile than METTLER TOLEDO INTL. It trades about -0.04 of its total potential returns per unit of risk. METTLER TOLEDO INTL is currently generating about 0.07 per unit of volatility. If you would invest 118,250 in METTLER TOLEDO INTL on September 13, 2024 and sell it today you would earn a total of 2,400 from holding METTLER TOLEDO INTL or generate 2.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Penn National Gaming vs. METTLER TOLEDO INTL
Performance |
| Timeline |
| Penn National Gaming |
| METTLER TOLEDO INTL |
Penn National and METTLER TOLEDO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Penn National and METTLER TOLEDO
The main advantage of trading using opposite Penn National and METTLER TOLEDO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Penn National position performs unexpectedly, METTLER TOLEDO 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 METTLER TOLEDO will offset losses from the drop in METTLER TOLEDO's long position.| Penn National vs. Tradegate AG Wertpapierhandelsbank | Penn National vs. The Hanover Insurance | Penn National vs. FUTURE GAMING GRP | Penn National vs. JSC Halyk bank |
| METTLER TOLEDO vs. United Internet AG | METTLER TOLEDO vs. Penn National Gaming | METTLER TOLEDO vs. CI GAMES SA | METTLER TOLEDO vs. QINGCI GAMES 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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