Correlation Between G H and PennantPark Investment
Can any of the company-specific risk be diversified away by investing in both G H 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 G H and PennantPark Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between G H 3 International and PennantPark Investment, you can compare the effects of market volatilities on G H 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 G H with a short position of PennantPark Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of G H and PennantPark Investment.
Diversification Opportunities for G H and PennantPark Investment
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GHTI and PennantPark is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding G H 3 International and PennantPark Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PennantPark Investment and G H 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 G H 3 International 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 G H i.e., G H and PennantPark Investment go up and down completely randomly.
Pair Corralation between G H and PennantPark Investment
If you would invest 687.00 in PennantPark Investment on November 27, 2024 and sell it today you would earn a total of 30.00 from holding PennantPark Investment or generate 4.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
G H 3 International vs. PennantPark Investment
Performance |
| Timeline |
| G H 3 |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| PennantPark Investment |
G H and PennantPark Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with G H and PennantPark Investment
The main advantage of trading using opposite G H and PennantPark Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G H 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.The idea behind G H 3 International and PennantPark Investment pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| PennantPark Investment vs. Sixth Street Specialty | PennantPark Investment vs. New Mountain Finance | PennantPark Investment vs. Carlyle Secured Lending | PennantPark Investment vs. BlackRock TCP Capital |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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