Correlation Between Proficient Auto and PennantPark Floating
Can any of the company-specific risk be diversified away by investing in both Proficient Auto 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 Proficient Auto and PennantPark Floating into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Proficient Auto Logistics, and PennantPark Floating Rate, you can compare the effects of market volatilities on Proficient Auto 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 Proficient Auto with a short position of PennantPark Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Proficient Auto and PennantPark Floating.
Diversification Opportunities for Proficient Auto and PennantPark Floating
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Proficient and PennantPark is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Proficient Auto Logistics, 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 Proficient Auto 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 Proficient Auto Logistics, 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 Proficient Auto i.e., Proficient Auto and PennantPark Floating go up and down completely randomly.
Pair Corralation between Proficient Auto and PennantPark Floating
Considering the 90-day investment horizon Proficient Auto Logistics, is expected to under-perform the PennantPark Floating. In addition to that, Proficient Auto is 4.06 times more volatile than PennantPark Floating Rate. It trades about -0.06 of its total potential returns per unit of risk. PennantPark Floating Rate is currently generating about 0.05 per unit of volatility. If you would invest 998.00 in PennantPark Floating Rate on August 31, 2024 and sell it today you would earn a total of 109.00 from holding PennantPark Floating Rate or generate 10.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 57.03% |
| Values | Daily Returns |
Proficient Auto Logistics, vs. PennantPark Floating Rate
Performance |
| Timeline |
| Proficient Auto Logi |
| PennantPark Floating Rate |
Proficient Auto and PennantPark Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Proficient Auto and PennantPark Floating
The main advantage of trading using opposite Proficient Auto and PennantPark Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Proficient Auto 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.| Proficient Auto vs. CDW Corp | Proficient Auto vs. Asure Software | Proficient Auto vs. Electrovaya Common Shares | Proficient Auto vs. Hurco Companies |
| PennantPark Floating vs. Ares Capital | PennantPark Floating vs. Hercules Capital | PennantPark Floating vs. Main Street 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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