Correlation Between PennantPark Floating and Bio Meat
Can any of the company-specific risk be diversified away by investing in both PennantPark Floating and Bio Meat 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 PennantPark Floating and Bio Meat into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PennantPark Floating Rate and Bio Meat Foodtech, you can compare the effects of market volatilities on PennantPark Floating and Bio Meat 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 PennantPark Floating with a short position of Bio Meat. Check out your portfolio center. Please also check ongoing floating volatility patterns of PennantPark Floating and Bio Meat.
Diversification Opportunities for PennantPark Floating and Bio Meat
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PennantPark and Bio is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding PennantPark Floating Rate and Bio Meat Foodtech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bio Meat Foodtech and PennantPark Floating 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 PennantPark Floating Rate are associated (or correlated) with Bio Meat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bio Meat Foodtech has no effect on the direction of PennantPark Floating i.e., PennantPark Floating and Bio Meat go up and down completely randomly.
Pair Corralation between PennantPark Floating and Bio Meat
Assuming the 90 days trading horizon PennantPark Floating Rate is expected to generate 2.02 times more return on investment than Bio Meat. However, PennantPark Floating is 2.02 times more volatile than Bio Meat Foodtech. It trades about 0.24 of its potential returns per unit of risk. Bio Meat Foodtech is currently generating about 0.1 per unit of risk. If you would invest 3,148 in PennantPark Floating Rate on September 13, 2024 and sell it today you would earn a total of 1,025 from holding PennantPark Floating Rate or generate 32.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PennantPark Floating Rate vs. Bio Meat Foodtech
Performance |
| Timeline |
| PennantPark Floating Rate |
| Bio Meat Foodtech |
PennantPark Floating and Bio Meat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PennantPark Floating and Bio Meat
The main advantage of trading using opposite PennantPark Floating and Bio Meat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PennantPark Floating position performs unexpectedly, Bio Meat 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 Bio Meat will offset losses from the drop in Bio Meat's long position.| PennantPark Floating vs. First International Bank | PennantPark Floating vs. Mivtach Shamir | PennantPark Floating vs. Atreyu Capital Markets | PennantPark Floating vs. IDI Insurance |
| Bio Meat vs. Altshuler Shaham Financial | Bio Meat vs. Meitav Dash Investments | Bio Meat vs. Mivtach Shamir | Bio Meat vs. YD More Investments |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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