Correlation Between Oriental Land and PennantPark Investment
Can any of the company-specific risk be diversified away by investing in both Oriental Land 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 Oriental Land and PennantPark Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oriental Land Co and PennantPark Investment, you can compare the effects of market volatilities on Oriental Land 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 Oriental Land with a short position of PennantPark Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oriental Land and PennantPark Investment.
Diversification Opportunities for Oriental Land and PennantPark Investment
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Oriental and PennantPark is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Oriental Land Co and PennantPark Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PennantPark Investment and Oriental Land 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 Oriental Land Co 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 Oriental Land i.e., Oriental Land and PennantPark Investment go up and down completely randomly.
Pair Corralation between Oriental Land and PennantPark Investment
Assuming the 90 days horizon Oriental Land Co is expected to generate 1.62 times more return on investment than PennantPark Investment. However, Oriental Land is 1.62 times more volatile than PennantPark Investment. It trades about 0.06 of its potential returns per unit of risk. PennantPark Investment is currently generating about 0.06 per unit of risk. If you would invest 1,006 in Oriental Land Co on September 3, 2024 and sell it today you would earn a total of 1,194 from holding Oriental Land Co or generate 118.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oriental Land Co vs. PennantPark Investment
Performance |
| Timeline |
| Oriental Land |
| PennantPark Investment |
Oriental Land and PennantPark Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oriental Land and PennantPark Investment
The main advantage of trading using opposite Oriental Land and PennantPark Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oriental Land 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.| Oriental Land vs. PennantPark Investment | Oriental Land vs. MGIC INVESTMENT | Oriental Land vs. Japan Asia Investment | Oriental Land vs. Gol Intelligent Airlines |
| PennantPark Investment vs. Blackstone Group | PennantPark Investment vs. BlackRock | PennantPark Investment vs. The Bank of | PennantPark Investment vs. Ameriprise Financial |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |