Correlation Between JLF INVESTMENT and PennantPark Investment
Can any of the company-specific risk be diversified away by investing in both JLF INVESTMENT 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 JLF INVESTMENT and PennantPark Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JLF INVESTMENT and PennantPark Investment, you can compare the effects of market volatilities on JLF INVESTMENT 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 JLF INVESTMENT with a short position of PennantPark Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of JLF INVESTMENT and PennantPark Investment.
Diversification Opportunities for JLF INVESTMENT and PennantPark Investment
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between JLF and PennantPark is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding JLF INVESTMENT and PennantPark Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PennantPark Investment and JLF INVESTMENT 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 JLF INVESTMENT 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 JLF INVESTMENT i.e., JLF INVESTMENT and PennantPark Investment go up and down completely randomly.
Pair Corralation between JLF INVESTMENT and PennantPark Investment
If you would invest 635.00 in PennantPark Investment on October 20, 2024 and sell it today you would earn a total of 53.00 from holding PennantPark Investment or generate 8.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JLF INVESTMENT vs. PennantPark Investment
Performance |
| Timeline |
| JLF INVESTMENT |
| PennantPark Investment |
JLF INVESTMENT and PennantPark Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JLF INVESTMENT and PennantPark Investment
The main advantage of trading using opposite JLF INVESTMENT and PennantPark Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JLF INVESTMENT 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.| JLF INVESTMENT vs. SIEM OFFSHORE NEW | JLF INVESTMENT vs. Algonquin Power Utilities | JLF INVESTMENT vs. Q2M Managementberatung AG | JLF INVESTMENT vs. ScanSource |
| PennantPark Investment vs. DATATEC LTD 2 | PennantPark Investment vs. MICRONIC MYDATA | PennantPark Investment vs. HEMISPHERE EGY | PennantPark Investment vs. COMPUTERSHARE |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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