Correlation Between PennantPark Floating and Advanced Proteome
Can any of the company-specific risk be diversified away by investing in both PennantPark Floating and Advanced Proteome 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 Advanced Proteome 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 Advanced Proteome Therapeutics, you can compare the effects of market volatilities on PennantPark Floating and Advanced Proteome 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 Advanced Proteome. Check out your portfolio center. Please also check ongoing floating volatility patterns of PennantPark Floating and Advanced Proteome.
Diversification Opportunities for PennantPark Floating and Advanced Proteome
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PennantPark and Advanced is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PennantPark Floating Rate and Advanced Proteome Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advanced Proteome 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 Advanced Proteome. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advanced Proteome has no effect on the direction of PennantPark Floating i.e., PennantPark Floating and Advanced Proteome go up and down completely randomly.
Pair Corralation between PennantPark Floating and Advanced Proteome
Given the investment horizon of 90 days PennantPark Floating Rate is expected to generate 0.25 times more return on investment than Advanced Proteome. However, PennantPark Floating Rate is 4.07 times less risky than Advanced Proteome. It trades about 0.04 of its potential returns per unit of risk. Advanced Proteome Therapeutics is currently generating about -0.06 per unit of risk. If you would invest 876.00 in PennantPark Floating Rate on September 12, 2024 and sell it today you would earn a total of 226.50 from holding PennantPark Floating Rate or generate 25.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PennantPark Floating Rate vs. Advanced Proteome Therapeutics
Performance |
| Timeline |
| PennantPark Floating Rate |
| Advanced Proteome |
PennantPark Floating and Advanced Proteome Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PennantPark Floating and Advanced Proteome
The main advantage of trading using opposite PennantPark Floating and Advanced Proteome positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PennantPark Floating position performs unexpectedly, Advanced Proteome 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 Advanced Proteome will offset losses from the drop in Advanced Proteome's long position.| PennantPark Floating vs. Gladstone Investment | PennantPark Floating vs. Stellus Capital Investment | PennantPark Floating vs. Prospect Capital | PennantPark Floating vs. Gladstone Capital |
| Advanced Proteome vs. Where Food Comes | Advanced Proteome vs. Kaltura | Advanced Proteome vs. Uber Technologies | Advanced Proteome vs. BioNTech SE |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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