Correlation Between Penn National and ScanTech

Can any of the company-specific risk be diversified away by investing in both Penn National and ScanTech 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 ScanTech 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 ScanTech AI Systems, you can compare the effects of market volatilities on Penn National and ScanTech 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 ScanTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Penn National and ScanTech.

Diversification Opportunities for Penn National and ScanTech

-0.6

Correlation Coefficient

Penn National  ScanTech

Excellent diversification

The 3 months correlation between Penn and ScanTech is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Penn National Gaming and ScanTech AI Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ScanTech AI Systems 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 ScanTech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ScanTech AI Systems has no effect on the direction of Penn National i.e., Penn National and ScanTech go up and down completely randomly.

Pair Corralation between Penn National and ScanTech

Given the investment horizon of 90 days Penn National Gaming is expected to generate 0.58 times more return on investment than ScanTech. However, Penn National Gaming is 1.73 times less risky than ScanTech. It trades about 0.16 of its potential returns per unit of risk. ScanTech AI Systems is currently generating about -0.25 per unit of risk. If you would invest  1,383  in Penn National Gaming on April 21, 2025 and sell it today you would earn a total of  422.00  from holding Penn National Gaming or generate 30.51% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Penn National Gaming  vs.  ScanTech AI Systems

Penn National Gaming

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Penn National Gaming are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of very fragile basic indicators, Penn National displayed solid returns over the last few months and may actually be approaching a breakup point.

ScanTech AI Systems

Risk-Adjusted Performance

Very Weak

Over the last 90 days ScanTech AI Systems has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in August 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Penn National and ScanTech

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

The idea behind Penn National Gaming and ScanTech AI Systems 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.

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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 CEOs Directory module to screen CEOs from public companies around the world.