Correlation Between Altshuler Shaham and PennantPark Floating
Can any of the company-specific risk be diversified away by investing in both Altshuler Shaham 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 Altshuler Shaham and PennantPark Floating into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Altshuler Shaham Financial and PennantPark Floating Rate, you can compare the effects of market volatilities on Altshuler Shaham 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 Altshuler Shaham with a short position of PennantPark Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altshuler Shaham and PennantPark Floating.
Diversification Opportunities for Altshuler Shaham and PennantPark Floating
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Altshuler and PennantPark is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Altshuler Shaham Financial 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 Altshuler Shaham 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 Altshuler Shaham Financial 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 Altshuler Shaham i.e., Altshuler Shaham and PennantPark Floating go up and down completely randomly.
Pair Corralation between Altshuler Shaham and PennantPark Floating
Assuming the 90 days trading horizon Altshuler Shaham is expected to generate 12.04 times less return on investment than PennantPark Floating. But when comparing it to its historical volatility, Altshuler Shaham Financial is 2.75 times less risky than PennantPark Floating. It trades about 0.01 of its potential returns per unit of risk. PennantPark Floating Rate is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 54,649 in PennantPark Floating Rate on August 25, 2024 and sell it today you would lose (50,476) from holding PennantPark Floating Rate or give up 92.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.74% |
| Values | Daily Returns |
Altshuler Shaham Financial vs. PennantPark Floating Rate
Performance |
| Timeline |
| Altshuler Shaham Fin |
| PennantPark Floating Rate |
Altshuler Shaham and PennantPark Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Altshuler Shaham and PennantPark Floating
The main advantage of trading using opposite Altshuler Shaham and PennantPark Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altshuler Shaham 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.| Altshuler Shaham vs. Generation Capital | Altshuler Shaham vs. Meitav Dash Investments | Altshuler Shaham vs. IBI Inv House | Altshuler Shaham vs. Mivtach Shamir |
| PennantPark Floating vs. Altshuler Shaham Financial | PennantPark Floating vs. Generation Capital | PennantPark Floating vs. Meitav Dash Investments | PennantPark Floating vs. IBI Inv House |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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