Correlation Between Aehr Test and PennantPark Floating
Can any of the company-specific risk be diversified away by investing in both Aehr Test and PennantPark Floating 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 Aehr Test and PennantPark Floating into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aehr Test Systems and PennantPark Floating Rate, you can compare the effects of market volatilities on Aehr Test and PennantPark Floating 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 Aehr Test with a short position of PennantPark Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aehr Test and PennantPark Floating.
Diversification Opportunities for Aehr Test and PennantPark Floating
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aehr and PennantPark is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Aehr Test Systems and PennantPark Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PennantPark Floating Rate and Aehr Test 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 Aehr Test Systems are associated (or correlated) with PennantPark Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PennantPark Floating Rate has no effect on the direction of Aehr Test i.e., Aehr Test and PennantPark Floating go up and down completely randomly.
Pair Corralation between Aehr Test and PennantPark Floating
Given the investment horizon of 90 days Aehr Test Systems is expected to under-perform the PennantPark Floating. In addition to that, Aehr Test is 4.9 times more volatile than PennantPark Floating Rate. It trades about -0.01 of its total potential returns per unit of risk. PennantPark Floating Rate is currently generating about 0.05 per unit of volatility. If you would invest 905.00 in PennantPark Floating Rate on September 4, 2024 and sell it today you would earn a total of 194.00 from holding PennantPark Floating Rate or generate 21.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aehr Test Systems vs. PennantPark Floating Rate
Performance |
| Timeline |
| Aehr Test Systems |
| PennantPark Floating Rate |
Aehr Test and PennantPark Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aehr Test and PennantPark Floating
The main advantage of trading using opposite Aehr Test and PennantPark Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aehr Test position performs unexpectedly, PennantPark Floating 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 Floating will offset losses from the drop in PennantPark Floating's long position.| Aehr Test vs. Photronics | Aehr Test vs. Lam Research Corp | Aehr Test vs. KLA Tencor | Aehr Test vs. Kulicke and Soffa |
| PennantPark Floating vs. Visa Class A | PennantPark Floating vs. Diamond Hill Investment | PennantPark Floating vs. Associated Capital Group | PennantPark Floating vs. Brookfield Corp |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |