Correlation Between PennantPark Investment and Jupiter Fund
Can any of the company-specific risk be diversified away by investing in both PennantPark Investment and Jupiter Fund 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 Jupiter Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PennantPark Investment and Jupiter Fund Management, you can compare the effects of market volatilities on PennantPark Investment and Jupiter Fund 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 Jupiter Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of PennantPark Investment and Jupiter Fund.
Diversification Opportunities for PennantPark Investment and Jupiter Fund
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between PennantPark and Jupiter is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding PennantPark Investment and Jupiter Fund Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jupiter Fund Management 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 Jupiter Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jupiter Fund Management has no effect on the direction of PennantPark Investment i.e., PennantPark Investment and Jupiter Fund go up and down completely randomly.
Pair Corralation between PennantPark Investment and Jupiter Fund
Assuming the 90 days horizon PennantPark Investment is expected to generate 0.63 times more return on investment than Jupiter Fund. However, PennantPark Investment is 1.6 times less risky than Jupiter Fund. It trades about 0.03 of its potential returns per unit of risk. Jupiter Fund Management is currently generating about -0.08 per unit of risk. If you would invest 655.00 in PennantPark Investment on October 29, 2024 and sell it today you would earn a total of 6.00 from holding PennantPark Investment or generate 0.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PennantPark Investment vs. Jupiter Fund Management
Performance |
| Timeline |
| PennantPark Investment |
| Jupiter Fund Management |
PennantPark Investment and Jupiter Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PennantPark Investment and Jupiter Fund
The main advantage of trading using opposite PennantPark Investment and Jupiter Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PennantPark Investment position performs unexpectedly, Jupiter Fund 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 Jupiter Fund will offset losses from the drop in Jupiter Fund's long position.| PennantPark Investment vs. CLEAN ENERGY FUELS | PennantPark Investment vs. Suntory Beverage Food | PennantPark Investment vs. DETALION GAMES SA | PennantPark Investment vs. Clean Energy Fuels |
| Jupiter Fund vs. COSTCO WHOLESALE CDR | Jupiter Fund vs. Retail Estates NV | Jupiter Fund vs. CHAMPION IRON | Jupiter Fund vs. BJs Wholesale Club |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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