Correlation Between PennantPark Floating and Ardagh Group
Can any of the company-specific risk be diversified away by investing in both PennantPark Floating and Ardagh Group 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 Ardagh Group 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 Ardagh Group SA, you can compare the effects of market volatilities on PennantPark Floating and Ardagh Group 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 Ardagh Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of PennantPark Floating and Ardagh Group.
Diversification Opportunities for PennantPark Floating and Ardagh Group
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PennantPark and Ardagh is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PennantPark Floating Rate and Ardagh Group SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ardagh Group SA 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 Ardagh Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ardagh Group SA has no effect on the direction of PennantPark Floating i.e., PennantPark Floating and Ardagh Group go up and down completely randomly.
Pair Corralation between PennantPark Floating and Ardagh Group
If you would invest 914.00 in PennantPark Floating Rate on September 12, 2024 and sell it today you would earn a total of 188.50 from holding PennantPark Floating Rate or generate 20.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
PennantPark Floating Rate vs. Ardagh Group SA
Performance |
| Timeline |
| PennantPark Floating Rate |
| Ardagh Group SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
PennantPark Floating and Ardagh Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PennantPark Floating and Ardagh Group
The main advantage of trading using opposite PennantPark Floating and Ardagh Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PennantPark Floating position performs unexpectedly, Ardagh Group 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 Ardagh Group will offset losses from the drop in Ardagh Group's long position.| PennantPark Floating vs. Stellus Capital Investment | PennantPark Floating vs. Prospect Capital | PennantPark Floating vs. Gladstone Capital | PennantPark Floating vs. Main Street Capital |
| Ardagh Group vs. Jacobs Solutions | Ardagh Group vs. HNI Corp | Ardagh Group vs. Sphere Entertainment Co | Ardagh Group vs. Mativ Holdings |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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