Correlation Between First Ship and PennantPark Floating
Can any of the company-specific risk be diversified away by investing in both First Ship 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 First Ship and PennantPark Floating into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Ship Lease and PennantPark Floating Rate, you can compare the effects of market volatilities on First Ship 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 First Ship with a short position of PennantPark Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Ship and PennantPark Floating.
Diversification Opportunities for First Ship and PennantPark Floating
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between First and PennantPark is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding First Ship Lease 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 First Ship 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 First Ship Lease 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 First Ship i.e., First Ship and PennantPark Floating go up and down completely randomly.
Pair Corralation between First Ship and PennantPark Floating
If you would invest 1,080 in PennantPark Floating Rate on September 1, 2024 and sell it today you would earn a total of 36.00 from holding PennantPark Floating Rate or generate 3.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
First Ship Lease vs. PennantPark Floating Rate
Performance |
| Timeline |
| First Ship Lease |
| PennantPark Floating Rate |
First Ship and PennantPark Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Ship and PennantPark Floating
The main advantage of trading using opposite First Ship and PennantPark Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Ship 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.| First Ship vs. WiMi Hologram Cloud | First Ship vs. Summit Materials | First Ship vs. Asure Software | First Ship vs. Casio Computer Co |
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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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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