Correlation Between PennantPark Investment and JLF INVESTMENT
Can any of the company-specific risk be diversified away by investing in both PennantPark Investment and JLF INVESTMENT 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 JLF INVESTMENT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PennantPark Investment and JLF INVESTMENT, you can compare the effects of market volatilities on PennantPark Investment and JLF INVESTMENT 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 JLF INVESTMENT. Check out your portfolio center. Please also check ongoing floating volatility patterns of PennantPark Investment and JLF INVESTMENT.
Diversification Opportunities for PennantPark Investment and JLF INVESTMENT
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PennantPark and JLF is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PennantPark Investment and JLF INVESTMENT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JLF INVESTMENT 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 JLF INVESTMENT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JLF INVESTMENT has no effect on the direction of PennantPark Investment i.e., PennantPark Investment and JLF INVESTMENT go up and down completely randomly.
Pair Corralation between PennantPark Investment and JLF INVESTMENT
If you would invest 596.00 in PennantPark Investment on November 2, 2024 and sell it today you would earn a total of 71.00 from holding PennantPark Investment or generate 11.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PennantPark Investment vs. JLF INVESTMENT
Performance |
| Timeline |
| PennantPark Investment |
| JLF INVESTMENT |
PennantPark Investment and JLF INVESTMENT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PennantPark Investment and JLF INVESTMENT
The main advantage of trading using opposite PennantPark Investment and JLF INVESTMENT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PennantPark Investment position performs unexpectedly, JLF INVESTMENT 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 JLF INVESTMENT will offset losses from the drop in JLF INVESTMENT's long position.| PennantPark Investment vs. Teradata Corp | PennantPark Investment vs. SANOK RUBBER ZY | PennantPark Investment vs. Rayonier Advanced Materials | PennantPark Investment vs. TERADATA |
| JLF INVESTMENT vs. China Eastern Airlines | JLF INVESTMENT vs. Chiba Bank | JLF INVESTMENT vs. CHIBA BANK | JLF INVESTMENT vs. UNIQA INSURANCE GR |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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