Correlation Between VIENNA INSURANCE and Penn National
Can any of the company-specific risk be diversified away by investing in both VIENNA INSURANCE and Penn National 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 VIENNA INSURANCE and Penn National into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VIENNA INSURANCE GR and Penn National Gaming, you can compare the effects of market volatilities on VIENNA INSURANCE and Penn National 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 VIENNA INSURANCE with a short position of Penn National. Check out your portfolio center. Please also check ongoing floating volatility patterns of VIENNA INSURANCE and Penn National.
Diversification Opportunities for VIENNA INSURANCE and Penn National
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between VIENNA and Penn is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding VIENNA INSURANCE GR and Penn National Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Penn National Gaming and VIENNA INSURANCE 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 VIENNA INSURANCE GR are associated (or correlated) with Penn National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Penn National Gaming has no effect on the direction of VIENNA INSURANCE i.e., VIENNA INSURANCE and Penn National go up and down completely randomly.
Pair Corralation between VIENNA INSURANCE and Penn National
Assuming the 90 days trading horizon VIENNA INSURANCE GR is expected to generate 0.2 times more return on investment than Penn National. However, VIENNA INSURANCE GR is 5.07 times less risky than Penn National. It trades about 0.3 of its potential returns per unit of risk. Penn National Gaming is currently generating about 0.02 per unit of risk. If you would invest 2,930 in VIENNA INSURANCE GR on October 11, 2024 and sell it today you would earn a total of 115.00 from holding VIENNA INSURANCE GR or generate 3.92% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
VIENNA INSURANCE GR vs. Penn National Gaming
Performance |
Timeline |
VIENNA INSURANCE |
Penn National Gaming |
VIENNA INSURANCE and Penn National Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with VIENNA INSURANCE and Penn National
The main advantage of trading using opposite VIENNA INSURANCE and Penn National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VIENNA INSURANCE position performs unexpectedly, Penn National 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 Penn National will offset losses from the drop in Penn National's long position.VIENNA INSURANCE vs. OURGAME INTHOLDL 00005 | VIENNA INSURANCE vs. Zoom Video Communications | VIENNA INSURANCE vs. FIH MOBILE | VIENNA INSURANCE vs. GAMING FAC SA |
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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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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