Correlation Between PennantPark Investment and CNVISION MEDIA
Can any of the company-specific risk be diversified away by investing in both PennantPark Investment and CNVISION MEDIA 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 CNVISION MEDIA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PennantPark Investment and CNVISION MEDIA, you can compare the effects of market volatilities on PennantPark Investment and CNVISION MEDIA 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 CNVISION MEDIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of PennantPark Investment and CNVISION MEDIA.
Diversification Opportunities for PennantPark Investment and CNVISION MEDIA
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between PennantPark and CNVISION is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding PennantPark Investment and CNVISION MEDIA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CNVISION MEDIA 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 CNVISION MEDIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CNVISION MEDIA has no effect on the direction of PennantPark Investment i.e., PennantPark Investment and CNVISION MEDIA go up and down completely randomly.
Pair Corralation between PennantPark Investment and CNVISION MEDIA
Assuming the 90 days horizon PennantPark Investment is expected to generate 0.44 times more return on investment than CNVISION MEDIA. However, PennantPark Investment is 2.26 times less risky than CNVISION MEDIA. It trades about 0.13 of its potential returns per unit of risk. CNVISION MEDIA is currently generating about 0.01 per unit of risk. If you would invest 595.00 in PennantPark Investment on August 28, 2024 and sell it today you would earn a total of 63.00 from holding PennantPark Investment or generate 10.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PennantPark Investment vs. CNVISION MEDIA
Performance |
| Timeline |
| PennantPark Investment |
| CNVISION MEDIA |
PennantPark Investment and CNVISION MEDIA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PennantPark Investment and CNVISION MEDIA
The main advantage of trading using opposite PennantPark Investment and CNVISION MEDIA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PennantPark Investment position performs unexpectedly, CNVISION MEDIA 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 CNVISION MEDIA will offset losses from the drop in CNVISION MEDIA's long position.| PennantPark Investment vs. MGIC INVESTMENT | PennantPark Investment vs. Postal Savings Bank | PennantPark Investment vs. Apollo Investment Corp | PennantPark Investment vs. GREENX METALS LTD |
| CNVISION MEDIA vs. G III Apparel Group | CNVISION MEDIA vs. SLR Investment Corp | CNVISION MEDIA vs. SEI INVESTMENTS | CNVISION MEDIA vs. ScanSource |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |