Correlation Between PENN Entertainment and MAGNUM MINING
Can any of the company-specific risk be diversified away by investing in both PENN Entertainment and MAGNUM 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 MAGNUM 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 MAGNUM MINING EXP, you can compare the effects of market volatilities on PENN Entertainment and MAGNUM 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 MAGNUM MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of PENN Entertainment and MAGNUM MINING.
Diversification Opportunities for PENN Entertainment and MAGNUM MINING
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PENN and MAGNUM is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PENN Entertainment and MAGNUM MINING EXP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MAGNUM MINING EXP 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 MAGNUM MINING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MAGNUM MINING EXP has no effect on the direction of PENN Entertainment i.e., PENN Entertainment and MAGNUM MINING go up and down completely randomly.
Pair Corralation between PENN Entertainment and MAGNUM MINING
If you would invest 1,760 in PENN Entertainment on October 25, 2024 and sell it today you would earn a total of 165.00 from holding PENN Entertainment or generate 9.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PENN Entertainment vs. MAGNUM MINING EXP
Performance |
| Timeline |
| PENN Entertainment |
| MAGNUM MINING EXP |
PENN Entertainment and MAGNUM MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PENN Entertainment and MAGNUM MINING
The main advantage of trading using opposite PENN Entertainment and MAGNUM MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PENN Entertainment position performs unexpectedly, MAGNUM 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 MAGNUM MINING will offset losses from the drop in MAGNUM MINING's long position.| PENN Entertainment vs. Apple Inc | PENN Entertainment vs. Apple Inc | PENN Entertainment vs. Apple Inc | PENN Entertainment vs. Apple Inc |
| MAGNUM MINING vs. Aristocrat Leisure Limited | MAGNUM MINING vs. COLUMBIA SPORTSWEAR | MAGNUM MINING vs. Playa Hotels Resorts | MAGNUM MINING vs. Columbia Sportswear |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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