Correlation Between Eagle Point and PennantPark Floating
Can any of the company-specific risk be diversified away by investing in both Eagle Point 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 Eagle Point and PennantPark Floating into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eagle Point Credit and PennantPark Floating Rate, you can compare the effects of market volatilities on Eagle Point 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 Eagle Point with a short position of PennantPark Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Point and PennantPark Floating.
Diversification Opportunities for Eagle Point and PennantPark Floating
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Eagle and PennantPark is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Point Credit 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 Eagle Point 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 Eagle Point Credit 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 Eagle Point i.e., Eagle Point and PennantPark Floating go up and down completely randomly.
Pair Corralation between Eagle Point and PennantPark Floating
Considering the 90-day investment horizon Eagle Point Credit is expected to under-perform the PennantPark Floating. In addition to that, Eagle Point is 1.16 times more volatile than PennantPark Floating Rate. It trades about -0.17 of its total potential returns per unit of risk. PennantPark Floating Rate is currently generating about -0.15 per unit of volatility. If you would invest 1,138 in PennantPark Floating Rate on August 29, 2024 and sell it today you would lose (32.00) from holding PennantPark Floating Rate or give up 2.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eagle Point Credit vs. PennantPark Floating Rate
Performance |
| Timeline |
| Eagle Point Credit |
| PennantPark Floating Rate |
Eagle Point and PennantPark Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagle Point and PennantPark Floating
The main advantage of trading using opposite Eagle Point and PennantPark Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Point 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.| Eagle Point vs. Cornerstone Strategic Return | Eagle Point vs. Cornerstone Strategic Value | Eagle Point vs. Oxford Square Capital | Eagle Point vs. Guggenheim Strategic Opportunities |
| PennantPark Floating vs. TPG Inc | PennantPark Floating vs. Carlyle Secured Lending | 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |