Correlation Between PennantPark Investment and Haier Smart
Can any of the company-specific risk be diversified away by investing in both PennantPark Investment and Haier Smart 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 Haier Smart into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PennantPark Investment and Haier Smart Home, you can compare the effects of market volatilities on PennantPark Investment and Haier Smart 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 Haier Smart. Check out your portfolio center. Please also check ongoing floating volatility patterns of PennantPark Investment and Haier Smart.
Diversification Opportunities for PennantPark Investment and Haier Smart
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PennantPark and Haier is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding PennantPark Investment and Haier Smart Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haier Smart Home 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 Haier Smart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haier Smart Home has no effect on the direction of PennantPark Investment i.e., PennantPark Investment and Haier Smart go up and down completely randomly.
Pair Corralation between PennantPark Investment and Haier Smart
Assuming the 90 days horizon PennantPark Investment is expected to generate 1.77 times more return on investment than Haier Smart. However, PennantPark Investment is 1.77 times more volatile than Haier Smart Home. It trades about 0.07 of its potential returns per unit of risk. Haier Smart Home is currently generating about 0.01 per unit of risk. If you would invest 639.00 in PennantPark Investment on August 30, 2024 and sell it today you would earn a total of 19.00 from holding PennantPark Investment or generate 2.97% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
PennantPark Investment vs. Haier Smart Home
Performance |
Timeline |
PennantPark Investment |
Haier Smart Home |
PennantPark Investment and Haier Smart Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with PennantPark Investment and Haier Smart
The main advantage of trading using opposite PennantPark Investment and Haier Smart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PennantPark Investment position performs unexpectedly, Haier Smart 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 Haier Smart will offset losses from the drop in Haier Smart's long position.PennantPark Investment vs. THAI BEVERAGE | PennantPark Investment vs. LG Display Co | PennantPark Investment vs. USWE SPORTS AB | PennantPark Investment vs. NISSIN FOODS HLDGS |
Haier Smart vs. Jupiter Fund Management | Haier Smart vs. Alfa Financial Software | Haier Smart vs. Sqs Software Quality | Haier Smart vs. ATOSS SOFTWARE |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
Content Syndication Quickly integrate customizable finance content to your own investment portal | |
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
Equity Valuation Check real value of public entities based on technical and fundamental data |