Correlation Between Gamehost and Penn National
Can any of the company-specific risk be diversified away by investing in both Gamehost 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 Gamehost and Penn National into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gamehost and Penn National Gaming, you can compare the effects of market volatilities on Gamehost 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 Gamehost with a short position of Penn National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gamehost and Penn National.
Diversification Opportunities for Gamehost and Penn National
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gamehost and Penn is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Gamehost 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 Gamehost 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 Gamehost 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 Gamehost i.e., Gamehost and Penn National go up and down completely randomly.
Pair Corralation between Gamehost and Penn National
Assuming the 90 days horizon Gamehost is expected to generate 0.65 times more return on investment than Penn National. However, Gamehost is 1.55 times less risky than Penn National. It trades about 0.27 of its potential returns per unit of risk. Penn National Gaming is currently generating about 0.13 per unit of risk. If you would invest 708.00 in Gamehost on April 22, 2025 and sell it today you would earn a total of 244.00 from holding Gamehost or generate 34.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.41% |
| Values | Daily Returns |
Gamehost vs. Penn National Gaming
Performance |
| Timeline |
| Gamehost |
| Penn National Gaming |
Gamehost and Penn National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gamehost and Penn National
The main advantage of trading using opposite Gamehost and Penn National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gamehost 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.| Gamehost vs. Penn National Gaming | Gamehost vs. Pizza Pizza Royalty | Gamehost vs. BTB Real Estate | Gamehost vs. Sienna Senior Living |
| Penn National vs. DraftKings | Penn National vs. MGM Resorts International | Penn National vs. Caesars Entertainment | Penn National vs. Boyd Gaming |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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