Correlation Between PENN Entertainment and NIGHTINGALE HEALTH
Can any of the company-specific risk be diversified away by investing in both PENN Entertainment and NIGHTINGALE HEALTH 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 Entertainment and NIGHTINGALE HEALTH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PENN Entertainment and NIGHTINGALE HEALTH EO, you can compare the effects of market volatilities on PENN Entertainment and NIGHTINGALE HEALTH 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 Entertainment with a short position of NIGHTINGALE HEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of PENN Entertainment and NIGHTINGALE HEALTH.
Diversification Opportunities for PENN Entertainment and NIGHTINGALE HEALTH
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PENN and NIGHTINGALE is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding PENN Entertainment and NIGHTINGALE HEALTH EO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NIGHTINGALE HEALTH and PENN Entertainment 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 Entertainment are associated (or correlated) with NIGHTINGALE HEALTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NIGHTINGALE HEALTH has no effect on the direction of PENN Entertainment i.e., PENN Entertainment and NIGHTINGALE HEALTH go up and down completely randomly.
Pair Corralation between PENN Entertainment and NIGHTINGALE HEALTH
Assuming the 90 days trading horizon PENN Entertainment is expected to generate 3.28 times less return on investment than NIGHTINGALE HEALTH. In addition to that, PENN Entertainment is 1.18 times more volatile than NIGHTINGALE HEALTH EO. It trades about 0.05 of its total potential returns per unit of risk. NIGHTINGALE HEALTH EO is currently generating about 0.18 per unit of volatility. If you would invest 281.00 in NIGHTINGALE HEALTH EO on October 11, 2024 and sell it today you would earn a total of 24.00 from holding NIGHTINGALE HEALTH EO or generate 8.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PENN Entertainment vs. NIGHTINGALE HEALTH EO
Performance |
| Timeline |
| PENN Entertainment |
| NIGHTINGALE HEALTH |
PENN Entertainment and NIGHTINGALE HEALTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PENN Entertainment and NIGHTINGALE HEALTH
The main advantage of trading using opposite PENN Entertainment and NIGHTINGALE HEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PENN Entertainment position performs unexpectedly, NIGHTINGALE HEALTH 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 NIGHTINGALE HEALTH will offset losses from the drop in NIGHTINGALE HEALTH's long position.| PENN Entertainment vs. PARKEN Sport Entertainment | PENN Entertainment vs. SEI INVESTMENTS | PENN Entertainment vs. Japan Asia Investment | PENN Entertainment vs. WisdomTree Investments |
| NIGHTINGALE HEALTH vs. Live Nation Entertainment | NIGHTINGALE HEALTH vs. Lifeway Foods | NIGHTINGALE HEALTH vs. PENN Entertainment | NIGHTINGALE HEALTH vs. PARKEN Sport Entertainment |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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