Correlation Between Galaxy Entertainment and PennantPark Floating
Can any of the company-specific risk be diversified away by investing in both Galaxy Entertainment 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 Galaxy Entertainment and PennantPark Floating into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Galaxy Entertainment Group and PennantPark Floating Rate, you can compare the effects of market volatilities on Galaxy Entertainment 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 Galaxy Entertainment with a short position of PennantPark Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Galaxy Entertainment and PennantPark Floating.
Diversification Opportunities for Galaxy Entertainment and PennantPark Floating
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Galaxy and PennantPark is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Galaxy Entertainment Group 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 Galaxy Entertainment 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 Galaxy Entertainment Group 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 Galaxy Entertainment i.e., Galaxy Entertainment and PennantPark Floating go up and down completely randomly.
Pair Corralation between Galaxy Entertainment and PennantPark Floating
Assuming the 90 days horizon Galaxy Entertainment Group is expected to generate 7.05 times more return on investment than PennantPark Floating. However, Galaxy Entertainment is 7.05 times more volatile than PennantPark Floating Rate. It trades about 0.05 of its potential returns per unit of risk. PennantPark Floating Rate is currently generating about 0.1 per unit of risk. If you would invest 414.00 in Galaxy Entertainment Group on October 7, 2024 and sell it today you would earn a total of 11.00 from holding Galaxy Entertainment Group or generate 2.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Galaxy Entertainment Group vs. PennantPark Floating Rate
Performance |
| Timeline |
| Galaxy Entertainment |
| PennantPark Floating Rate |
Galaxy Entertainment and PennantPark Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Galaxy Entertainment and PennantPark Floating
The main advantage of trading using opposite Galaxy Entertainment and PennantPark Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Galaxy Entertainment 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.| Galaxy Entertainment vs. ATRenew Inc DRC | Galaxy Entertainment vs. The Gap, | Galaxy Entertainment vs. SEI Investments | Galaxy Entertainment vs. Omni Health |
| PennantPark Floating vs. Gladstone Investment | PennantPark Floating vs. Horizon Technology Finance | PennantPark Floating vs. Stellus Capital Investment | PennantPark Floating vs. Prospect 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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