Correlation Between Penn National and MEDIOLANUM
Can any of the company-specific risk be diversified away by investing in both Penn National and MEDIOLANUM 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 MEDIOLANUM 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 MEDIOLANUM, you can compare the effects of market volatilities on Penn National and MEDIOLANUM 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 MEDIOLANUM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Penn National and MEDIOLANUM.
Diversification Opportunities for Penn National and MEDIOLANUM
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Penn and MEDIOLANUM is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Penn National Gaming and MEDIOLANUM in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MEDIOLANUM 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 MEDIOLANUM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MEDIOLANUM has no effect on the direction of Penn National i.e., Penn National and MEDIOLANUM go up and down completely randomly.
Pair Corralation between Penn National and MEDIOLANUM
If you would invest 1,736 in Penn National Gaming on October 21, 2024 and sell it today you would earn a total of 212.00 from holding Penn National Gaming or generate 12.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 5.88% |
| Values | Daily Returns |
Penn National Gaming vs. MEDIOLANUM
Performance |
| Timeline |
| Penn National Gaming |
| MEDIOLANUM |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Penn National and MEDIOLANUM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Penn National and MEDIOLANUM
The main advantage of trading using opposite Penn National and MEDIOLANUM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Penn National position performs unexpectedly, MEDIOLANUM 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 MEDIOLANUM will offset losses from the drop in MEDIOLANUM's long position.| Penn National vs. BANKINTER ADR 2007 | Penn National vs. GEELY AUTOMOBILE | Penn National vs. Cincinnati Financial Corp | Penn National vs. Highlight Communications AG |
| MEDIOLANUM vs. BROADWIND ENRGY | MEDIOLANUM vs. TEXAS ROADHOUSE | MEDIOLANUM vs. Jupiter Fund Management | MEDIOLANUM vs. Q2M Managementberatung AG |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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