Correlation Between PennantPark Investment and Jacquet Metal
Can any of the company-specific risk be diversified away by investing in both PennantPark Investment and Jacquet Metal 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 Jacquet Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PennantPark Investment and Jacquet Metal Service, you can compare the effects of market volatilities on PennantPark Investment and Jacquet Metal 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 Jacquet Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of PennantPark Investment and Jacquet Metal.
Diversification Opportunities for PennantPark Investment and Jacquet Metal
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between PennantPark and Jacquet is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding PennantPark Investment and Jacquet Metal Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jacquet Metal Service 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 Jacquet Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jacquet Metal Service has no effect on the direction of PennantPark Investment i.e., PennantPark Investment and Jacquet Metal go up and down completely randomly.
Pair Corralation between PennantPark Investment and Jacquet Metal
Assuming the 90 days horizon PennantPark Investment is expected to generate 0.98 times more return on investment than Jacquet Metal. However, PennantPark Investment is 1.02 times less risky than Jacquet Metal. It trades about 0.1 of its potential returns per unit of risk. Jacquet Metal Service is currently generating about 0.01 per unit of risk. If you would invest 599.00 in PennantPark Investment on August 28, 2024 and sell it today you would earn a total of 61.00 from holding PennantPark Investment or generate 10.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PennantPark Investment vs. Jacquet Metal Service
Performance |
| Timeline |
| PennantPark Investment |
| Jacquet Metal Service |
PennantPark Investment and Jacquet Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PennantPark Investment and Jacquet Metal
The main advantage of trading using opposite PennantPark Investment and Jacquet Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PennantPark Investment position performs unexpectedly, Jacquet Metal 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 Jacquet Metal will offset losses from the drop in Jacquet Metal'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 |
| Jacquet Metal vs. Marie Brizard Wine | Jacquet Metal vs. Treasury Wine Estates | Jacquet Metal vs. GEELY AUTOMOBILE | Jacquet Metal vs. Gol Intelligent Airlines |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| 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 | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |