Correlation Between Nextplat Corp and PennantPark Floating
Can any of the company-specific risk be diversified away by investing in both Nextplat Corp 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 Nextplat Corp and PennantPark Floating into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nextplat Corp and PennantPark Floating Rate, you can compare the effects of market volatilities on Nextplat Corp 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 Nextplat Corp with a short position of PennantPark Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nextplat Corp and PennantPark Floating.
Diversification Opportunities for Nextplat Corp and PennantPark Floating
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Nextplat and PennantPark is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Nextplat Corp 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 Nextplat Corp 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 Nextplat Corp 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 Nextplat Corp i.e., Nextplat Corp and PennantPark Floating go up and down completely randomly.
Pair Corralation between Nextplat Corp and PennantPark Floating
Given the investment horizon of 90 days Nextplat Corp is expected to generate 14.25 times more return on investment than PennantPark Floating. However, Nextplat Corp is 14.25 times more volatile than PennantPark Floating Rate. It trades about 0.06 of its potential returns per unit of risk. PennantPark Floating Rate is currently generating about 0.05 per unit of risk. If you would invest 99.00 in Nextplat Corp on November 18, 2024 and sell it today you would earn a total of 7.00 from holding Nextplat Corp or generate 7.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nextplat Corp vs. PennantPark Floating Rate
Performance |
| Timeline |
| Nextplat Corp |
| PennantPark Floating Rate |
Nextplat Corp and PennantPark Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nextplat Corp and PennantPark Floating
The main advantage of trading using opposite Nextplat Corp and PennantPark Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nextplat Corp 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.| Nextplat Corp vs. RenoWorks Software | Nextplat Corp vs. LifeSpeak | Nextplat Corp vs. 01 Communique Laboratory | Nextplat Corp vs. Where Food Comes |
| PennantPark Floating vs. Horizon Space Acquisition | PennantPark Floating vs. Erayak Power Solution | PennantPark Floating vs. AlphaTime Acquisition Corp | PennantPark Floating vs. Israel Acquisitions 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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