Correlation Between SANOK RUBBER and PennantPark Investment
Can any of the company-specific risk be diversified away by investing in both SANOK RUBBER and PennantPark 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 SANOK RUBBER and PennantPark Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SANOK RUBBER ZY and PennantPark Investment, you can compare the effects of market volatilities on SANOK RUBBER and PennantPark 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 SANOK RUBBER with a short position of PennantPark Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of SANOK RUBBER and PennantPark Investment.
Diversification Opportunities for SANOK RUBBER and PennantPark Investment
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SANOK and PennantPark is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding SANOK RUBBER ZY and PennantPark Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PennantPark Investment and SANOK RUBBER 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 SANOK RUBBER ZY are associated (or correlated) with PennantPark Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PennantPark Investment has no effect on the direction of SANOK RUBBER i.e., SANOK RUBBER and PennantPark Investment go up and down completely randomly.
Pair Corralation between SANOK RUBBER and PennantPark Investment
Assuming the 90 days horizon SANOK RUBBER ZY is expected to generate 0.98 times more return on investment than PennantPark Investment. However, SANOK RUBBER ZY is 1.02 times less risky than PennantPark Investment. It trades about 0.14 of its potential returns per unit of risk. PennantPark Investment is currently generating about 0.0 per unit of risk. If you would invest 480.00 in SANOK RUBBER ZY on October 26, 2024 and sell it today you would earn a total of 25.00 from holding SANOK RUBBER ZY or generate 5.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SANOK RUBBER ZY vs. PennantPark Investment
Performance |
| Timeline |
| SANOK RUBBER ZY |
| PennantPark Investment |
SANOK RUBBER and PennantPark Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SANOK RUBBER and PennantPark Investment
The main advantage of trading using opposite SANOK RUBBER and PennantPark Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SANOK RUBBER position performs unexpectedly, PennantPark 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 PennantPark Investment will offset losses from the drop in PennantPark Investment's long position.| SANOK RUBBER vs. Dno ASA | SANOK RUBBER vs. DENSO P ADR | SANOK RUBBER vs. Aptiv PLC | SANOK RUBBER vs. Bridgestone |
| PennantPark Investment vs. SANOK RUBBER ZY | PennantPark Investment vs. PURE FOODS TASMANIA | PennantPark Investment vs. CAL MAINE FOODS | PennantPark Investment vs. Mitsubishi Materials |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |