Correlation Between PennantPark Investment and Diös Fastigheter
Can any of the company-specific risk be diversified away by investing in both PennantPark Investment and Diös Fastigheter 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 Diös Fastigheter into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PennantPark Investment and Dis Fastigheter AB, you can compare the effects of market volatilities on PennantPark Investment and Diös Fastigheter 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 Diös Fastigheter. Check out your portfolio center. Please also check ongoing floating volatility patterns of PennantPark Investment and Diös Fastigheter.
Diversification Opportunities for PennantPark Investment and Diös Fastigheter
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PennantPark and Diös is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding PennantPark Investment and Dis Fastigheter AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dis Fastigheter AB 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 Diös Fastigheter. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dis Fastigheter AB has no effect on the direction of PennantPark Investment i.e., PennantPark Investment and Diös Fastigheter go up and down completely randomly.
Pair Corralation between PennantPark Investment and Diös Fastigheter
Assuming the 90 days horizon PennantPark Investment is expected to generate 1.05 times less return on investment than Diös Fastigheter. In addition to that, PennantPark Investment is 1.24 times more volatile than Dis Fastigheter AB. It trades about 0.04 of its total potential returns per unit of risk. Dis Fastigheter AB is currently generating about 0.06 per unit of volatility. If you would invest 684.00 in Dis Fastigheter AB on September 1, 2024 and sell it today you would earn a total of 15.00 from holding Dis Fastigheter AB or generate 2.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
PennantPark Investment vs. Dis Fastigheter AB
Performance |
| Timeline |
| PennantPark Investment |
| Dis Fastigheter AB |
PennantPark Investment and Diös Fastigheter Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PennantPark Investment and Diös Fastigheter
The main advantage of trading using opposite PennantPark Investment and Diös Fastigheter positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PennantPark Investment position performs unexpectedly, Diös Fastigheter 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 Diös Fastigheter will offset losses from the drop in Diös Fastigheter's long position.| PennantPark Investment vs. MeVis Medical Solutions | PennantPark Investment vs. ONWARD MEDICAL BV | PennantPark Investment vs. Compugroup Medical SE | PennantPark Investment vs. Insurance Australia Group |
| Diös Fastigheter vs. Harmony Gold Mining | Diös Fastigheter vs. Air Lease | Diös Fastigheter vs. BORR DRILLING NEW | Diös Fastigheter vs. GALENA MINING LTD |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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