Correlation Between EQT AB and PennantPark Investment
Can any of the company-specific risk be diversified away by investing in both EQT AB 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 EQT AB and PennantPark Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EQT AB and PennantPark Investment, you can compare the effects of market volatilities on EQT AB 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 EQT AB with a short position of PennantPark Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of EQT AB and PennantPark Investment.
Diversification Opportunities for EQT AB and PennantPark Investment
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between EQT and PennantPark is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding EQT AB and PennantPark Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PennantPark Investment and EQT AB 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 EQT AB 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 EQT AB i.e., EQT AB and PennantPark Investment go up and down completely randomly.
Pair Corralation between EQT AB and PennantPark Investment
Assuming the 90 days horizon EQT AB is expected to generate 1.03 times less return on investment than PennantPark Investment. In addition to that, EQT AB is 1.38 times more volatile than PennantPark Investment. It trades about 0.07 of its total potential returns per unit of risk. PennantPark Investment is currently generating about 0.1 per unit of volatility. If you would invest 336.00 in PennantPark Investment on August 26, 2024 and sell it today you would earn a total of 318.00 from holding PennantPark Investment or generate 94.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
EQT AB vs. PennantPark Investment
Performance |
| Timeline |
| EQT AB |
| PennantPark Investment |
EQT AB and PennantPark Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EQT AB and PennantPark Investment
The main advantage of trading using opposite EQT AB and PennantPark Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EQT AB 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.| EQT AB vs. The Bank of | EQT AB vs. Ares Management Corp | EQT AB vs. Superior Plus Corp | EQT AB vs. NMI Holdings |
| PennantPark Investment vs. The Bank of | PennantPark Investment vs. Ares Management Corp | PennantPark Investment vs. Superior Plus Corp | PennantPark Investment vs. NMI 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |