Correlation Between Penn National and Corazon Mining

Can any of the company-specific risk be diversified away by investing in both Penn National and Corazon 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 National and Corazon Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Penn National Gaming and Corazon Mining, you can compare the effects of market volatilities on Penn National and Corazon 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 National with a short position of Corazon Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Penn National and Corazon Mining.

Diversification Opportunities for Penn National and Corazon Mining

0.0

Correlation Coefficient

Penn National  Corazon Mining

Pay attention - limited upside

The 3 months correlation between Penn and Corazon is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Penn National Gaming and Corazon Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corazon Mining and Penn National 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 National Gaming are associated (or correlated) with Corazon Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corazon Mining has no effect on the direction of Penn National i.e., Penn National and Corazon Mining go up and down completely randomly.

Pair Corralation between Penn National and Corazon Mining

If you would invest  0.34  in Corazon Mining on January 3, 2025 and sell it today you would earn a total of  0.00  from holding Corazon Mining or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Penn National Gaming  vs.  Corazon Mining

Penn National Gaming

Risk-Adjusted Performance

Very Weak

Over the last 90 days Penn National Gaming has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in May 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Corazon Mining

Risk-Adjusted Performance

Very Weak

Over the last 90 days Corazon Mining has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Corazon Mining is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Penn National and Corazon Mining

The main advantage of trading using opposite Penn National and Corazon Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Penn National position performs unexpectedly, Corazon 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 Corazon Mining will offset losses from the drop in Corazon Mining's long position.

The idea behind Penn National Gaming and Corazon Mining pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.