Correlation Between PennantPark Investment and HILONG HOLDING
Can any of the company-specific risk be diversified away by investing in both PennantPark Investment and HILONG HOLDING 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 HILONG HOLDING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PennantPark Investment and HILONG HOLDING LTD, you can compare the effects of market volatilities on PennantPark Investment and HILONG HOLDING 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 HILONG HOLDING. Check out your portfolio center. Please also check ongoing floating volatility patterns of PennantPark Investment and HILONG HOLDING.
Diversification Opportunities for PennantPark Investment and HILONG HOLDING
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PennantPark and HILONG is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PennantPark Investment and HILONG HOLDING LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HILONG HOLDING LTD 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 HILONG HOLDING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HILONG HOLDING LTD has no effect on the direction of PennantPark Investment i.e., PennantPark Investment and HILONG HOLDING go up and down completely randomly.
Pair Corralation between PennantPark Investment and HILONG HOLDING
If you would invest 635.00 in PennantPark Investment on October 20, 2024 and sell it today you would earn a total of 53.00 from holding PennantPark Investment or generate 8.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
PennantPark Investment vs. HILONG HOLDING LTD
Performance |
| Timeline |
| PennantPark Investment |
| HILONG HOLDING LTD |
PennantPark Investment and HILONG HOLDING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PennantPark Investment and HILONG HOLDING
The main advantage of trading using opposite PennantPark Investment and HILONG HOLDING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PennantPark Investment position performs unexpectedly, HILONG HOLDING 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 HILONG HOLDING will offset losses from the drop in HILONG HOLDING's long position.| PennantPark Investment vs. DATATEC LTD 2 | PennantPark Investment vs. MICRONIC MYDATA | PennantPark Investment vs. HEMISPHERE EGY | PennantPark Investment vs. COMPUTERSHARE |
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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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