Correlation Between PennantPark Investment and Calibre Mining
Can any of the company-specific risk be diversified away by investing in both PennantPark Investment and Calibre Mining 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 Calibre Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PennantPark Investment and Calibre Mining Corp, you can compare the effects of market volatilities on PennantPark Investment and Calibre Mining 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 Calibre Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of PennantPark Investment and Calibre Mining.
Diversification Opportunities for PennantPark Investment and Calibre Mining
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between PennantPark and Calibre is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding PennantPark Investment and Calibre Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calibre Mining Corp 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 Calibre Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calibre Mining Corp has no effect on the direction of PennantPark Investment i.e., PennantPark Investment and Calibre Mining go up and down completely randomly.
Pair Corralation between PennantPark Investment and Calibre Mining
Assuming the 90 days horizon PennantPark Investment is expected to generate 0.61 times more return on investment than Calibre Mining. However, PennantPark Investment is 1.64 times less risky than Calibre Mining. It trades about 0.25 of its potential returns per unit of risk. Calibre Mining Corp is currently generating about 0.04 per unit of risk. If you would invest 642.00 in PennantPark Investment on October 11, 2024 and sell it today you would earn a total of 59.00 from holding PennantPark Investment or generate 9.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PennantPark Investment vs. Calibre Mining Corp
Performance |
| Timeline |
| PennantPark Investment |
| Calibre Mining Corp |
PennantPark Investment and Calibre Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PennantPark Investment and Calibre Mining
The main advantage of trading using opposite PennantPark Investment and Calibre Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PennantPark Investment position performs unexpectedly, Calibre Mining 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 Calibre Mining will offset losses from the drop in Calibre Mining's long position.| PennantPark Investment vs. RETAIL FOOD GROUP | PennantPark Investment vs. Salesforce | PennantPark Investment vs. SALESFORCE INC CDR | PennantPark Investment vs. CarsalesCom |
| Calibre Mining vs. PennantPark Investment | Calibre Mining vs. CVW CLEANTECH INC | Calibre Mining vs. SLR Investment Corp | Calibre Mining vs. Ultra Clean Holdings |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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