Correlation Between Getty Copper and PennantPark Investment
Can any of the company-specific risk be diversified away by investing in both Getty Copper 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 Getty Copper and PennantPark Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Getty Copper and PennantPark Investment, you can compare the effects of market volatilities on Getty Copper 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 Getty Copper with a short position of PennantPark Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Getty Copper and PennantPark Investment.
Diversification Opportunities for Getty Copper and PennantPark Investment
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Getty and PennantPark is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Getty Copper and PennantPark Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PennantPark Investment and Getty Copper 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 Getty Copper 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 Getty Copper i.e., Getty Copper and PennantPark Investment go up and down completely randomly.
Pair Corralation between Getty Copper and PennantPark Investment
If you would invest 678.00 in PennantPark Investment on September 2, 2024 and sell it today you would lose (1.00) from holding PennantPark Investment or give up 0.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Getty Copper vs. PennantPark Investment
Performance |
| Timeline |
| Getty Copper |
| PennantPark Investment |
Getty Copper and PennantPark Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Getty Copper and PennantPark Investment
The main advantage of trading using opposite Getty Copper and PennantPark Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Getty Copper 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.| Getty Copper vs. ATT Inc | Getty Copper vs. Merck Company | Getty Copper vs. Walt Disney | Getty Copper vs. Caterpillar |
| PennantPark Investment vs. Visa Class A | PennantPark Investment vs. Diamond Hill Investment | PennantPark Investment vs. Distoken Acquisition | PennantPark Investment vs. Associated Capital Group |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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