Correlation Between PENN Entertainment and Monument Mining
Can any of the company-specific risk be diversified away by investing in both PENN Entertainment and Monument 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 Entertainment and Monument Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PENN Entertainment and Monument Mining Limited, you can compare the effects of market volatilities on PENN Entertainment and Monument 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 Entertainment with a short position of Monument Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of PENN Entertainment and Monument Mining.
Diversification Opportunities for PENN Entertainment and Monument Mining
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PENN and Monument is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PENN Entertainment and Monument Mining Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Monument Mining 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 Monument Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Monument Mining has no effect on the direction of PENN Entertainment i.e., PENN Entertainment and Monument Mining go up and down completely randomly.
Pair Corralation between PENN Entertainment and Monument Mining
Assuming the 90 days trading horizon PENN Entertainment is expected to under-perform the Monument Mining. But the stock apears to be less risky and, when comparing its historical volatility, PENN Entertainment is 1.87 times less risky than Monument Mining. The stock trades about -0.02 of its potential returns per unit of risk. The Monument Mining Limited is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 6.40 in Monument Mining Limited on October 30, 2024 and sell it today you would earn a total of 14.60 from holding Monument Mining Limited or generate 228.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PENN Entertainment vs. Monument Mining Limited
Performance |
| Timeline |
| PENN Entertainment |
| Monument Mining |
PENN Entertainment and Monument Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PENN Entertainment and Monument Mining
The main advantage of trading using opposite PENN Entertainment and Monument Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PENN Entertainment position performs unexpectedly, Monument 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 Monument Mining will offset losses from the drop in Monument Mining's long position.| PENN Entertainment vs. Addus HomeCare | PENN Entertainment vs. LANDSEA GREEN MANAGEMENT | PENN Entertainment vs. Cleanaway Waste Management | PENN Entertainment vs. Haier Smart Home |
| Monument Mining vs. De Grey Mining | Monument Mining vs. FIREWEED METALS P | Monument Mining vs. SERI INDUSTRIAL EO | Monument Mining vs. ARDAGH METAL PACDL 0001 |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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