Correlation Between PennantPark Floating and China Eastern
Can any of the company-specific risk be diversified away by investing in both PennantPark Floating and China Eastern 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 China Eastern 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 China Eastern Airlines, you can compare the effects of market volatilities on PennantPark Floating and China Eastern 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 China Eastern. Check out your portfolio center. Please also check ongoing floating volatility patterns of PennantPark Floating and China Eastern.
Diversification Opportunities for PennantPark Floating and China Eastern
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PennantPark and China is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding PennantPark Floating Rate and China Eastern Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Eastern Airlines 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 China Eastern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Eastern Airlines has no effect on the direction of PennantPark Floating i.e., PennantPark Floating and China Eastern go up and down completely randomly.
Pair Corralation between PennantPark Floating and China Eastern
If you would invest 1,055 in PennantPark Floating Rate on September 3, 2024 and sell it today you would earn a total of 61.00 from holding PennantPark Floating Rate or generate 5.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.6% |
| Values | Daily Returns |
PennantPark Floating Rate vs. China Eastern Airlines
Performance |
| Timeline |
| PennantPark Floating Rate |
| China Eastern Airlines |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
PennantPark Floating and China Eastern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PennantPark Floating and China Eastern
The main advantage of trading using opposite PennantPark Floating and China Eastern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PennantPark Floating position performs unexpectedly, China Eastern 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 China Eastern will offset losses from the drop in China Eastern's long position.| PennantPark Floating vs. Federated Premier Municipal | PennantPark Floating vs. Blackrock Muniyield | PennantPark Floating vs. Federated Investors B | PennantPark Floating vs. SEI Investments |
| China Eastern vs. Arrow Electronics | China Eastern vs. Ambev SA ADR | China Eastern vs. Asure Software | China Eastern vs. Molson Coors Brewing |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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