Correlation Between Artemis Resources and PennantPark Investment
Can any of the company-specific risk be diversified away by investing in both Artemis Resources 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 Artemis Resources and PennantPark Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Artemis Resources and PennantPark Investment, you can compare the effects of market volatilities on Artemis Resources 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 Artemis Resources with a short position of PennantPark Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artemis Resources and PennantPark Investment.
Diversification Opportunities for Artemis Resources and PennantPark Investment
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Artemis and PennantPark is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Artemis Resources and PennantPark Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PennantPark Investment and Artemis Resources 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 Artemis Resources 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 Artemis Resources i.e., Artemis Resources and PennantPark Investment go up and down completely randomly.
Pair Corralation between Artemis Resources and PennantPark Investment
Assuming the 90 days trading horizon Artemis Resources is expected to under-perform the PennantPark Investment. In addition to that, Artemis Resources is 2.77 times more volatile than PennantPark Investment. It trades about -0.2 of its total potential returns per unit of risk. PennantPark Investment is currently generating about 0.03 per unit of volatility. If you would invest 625.00 in PennantPark Investment on September 2, 2024 and sell it today you would earn a total of 7.00 from holding PennantPark Investment or generate 1.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
Artemis Resources vs. PennantPark Investment
Performance |
| Timeline |
| Artemis Resources |
| PennantPark Investment |
Artemis Resources and PennantPark Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Artemis Resources and PennantPark Investment
The main advantage of trading using opposite Artemis Resources and PennantPark Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artemis Resources 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.| Artemis Resources vs. PennantPark Investment | Artemis Resources vs. Choice Hotels International | Artemis Resources vs. Strategic Investments AS | Artemis Resources vs. NH HOTEL GROUP |
| PennantPark Investment vs. Ameriprise Financial | 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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