Correlation Between PennantPark Investment and VARIOUS EATERIES
Can any of the company-specific risk be diversified away by investing in both PennantPark Investment and VARIOUS EATERIES 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 VARIOUS EATERIES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PennantPark Investment and VARIOUS EATERIES LS, you can compare the effects of market volatilities on PennantPark Investment and VARIOUS EATERIES 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 VARIOUS EATERIES. Check out your portfolio center. Please also check ongoing floating volatility patterns of PennantPark Investment and VARIOUS EATERIES.
Diversification Opportunities for PennantPark Investment and VARIOUS EATERIES
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PennantPark and VARIOUS is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding PennantPark Investment and VARIOUS EATERIES LS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VARIOUS EATERIES 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 VARIOUS EATERIES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VARIOUS EATERIES has no effect on the direction of PennantPark Investment i.e., PennantPark Investment and VARIOUS EATERIES go up and down completely randomly.
Pair Corralation between PennantPark Investment and VARIOUS EATERIES
Assuming the 90 days horizon PennantPark Investment is expected to generate 1.68 times more return on investment than VARIOUS EATERIES. However, PennantPark Investment is 1.68 times more volatile than VARIOUS EATERIES LS. It trades about 0.19 of its potential returns per unit of risk. VARIOUS EATERIES LS is currently generating about -0.25 per unit of risk. 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 | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PennantPark Investment vs. VARIOUS EATERIES LS
Performance |
| Timeline |
| PennantPark Investment |
| VARIOUS EATERIES |
PennantPark Investment and VARIOUS EATERIES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PennantPark Investment and VARIOUS EATERIES
The main advantage of trading using opposite PennantPark Investment and VARIOUS EATERIES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PennantPark Investment position performs unexpectedly, VARIOUS EATERIES 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 VARIOUS EATERIES will offset losses from the drop in VARIOUS EATERIES's long position.| PennantPark Investment vs. H2O Retailing | PennantPark Investment vs. MARKET VECTR RETAIL | PennantPark Investment vs. BOS BETTER ONLINE | PennantPark Investment vs. CARSALESCOM |
| VARIOUS EATERIES vs. ZURICH INSURANCE GROUP | VARIOUS EATERIES vs. LIFENET INSURANCE CO | VARIOUS EATERIES vs. Insurance Australia Group | VARIOUS EATERIES vs. MGIC 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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