Correlation Between PennantPark Investment and EPlay Digital
Can any of the company-specific risk be diversified away by investing in both PennantPark Investment and EPlay Digital 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 PennantPark Investment and EPlay Digital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PennantPark Investment and ePlay Digital, you can compare the effects of market volatilities on PennantPark Investment and EPlay Digital 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 PennantPark Investment with a short position of EPlay Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of PennantPark Investment and EPlay Digital.
Diversification Opportunities for PennantPark Investment and EPlay Digital
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PennantPark and EPlay is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PennantPark Investment and ePlay Digital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ePlay Digital and PennantPark Investment 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 PennantPark Investment are associated (or correlated) with EPlay Digital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ePlay Digital has no effect on the direction of PennantPark Investment i.e., PennantPark Investment and EPlay Digital go up and down completely randomly.
Pair Corralation between PennantPark Investment and EPlay Digital
If you would invest 653.00 in PennantPark Investment on October 23, 2024 and sell it today you would earn a total of 43.00 from holding PennantPark Investment or generate 6.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PennantPark Investment vs. ePlay Digital
Performance |
| Timeline |
| PennantPark Investment |
| ePlay Digital |
PennantPark Investment and EPlay Digital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PennantPark Investment and EPlay Digital
The main advantage of trading using opposite PennantPark Investment and EPlay Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PennantPark Investment position performs unexpectedly, EPlay Digital 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 EPlay Digital will offset losses from the drop in EPlay Digital's long position.| PennantPark Investment vs. H2O Retailing | PennantPark Investment vs. MARKET VECTR RETAIL | PennantPark Investment vs. BOS BETTER ONLINE | PennantPark Investment vs. CARSALESCOM |
| EPlay Digital vs. Flutter Entertainment PLC | EPlay Digital vs. Harmony Gold Mining | EPlay Digital vs. Townsquare Media | EPlay Digital vs. Golden Entertainment |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |