Correlation Between PennantPark Floating and Celsius Holdings
Can any of the company-specific risk be diversified away by investing in both PennantPark Floating and Celsius Holdings 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 Celsius Holdings 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 Celsius Holdings, you can compare the effects of market volatilities on PennantPark Floating and Celsius Holdings 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 Celsius Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of PennantPark Floating and Celsius Holdings.
Diversification Opportunities for PennantPark Floating and Celsius Holdings
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between PennantPark and Celsius is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding PennantPark Floating Rate and Celsius Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celsius Holdings 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 Celsius Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Celsius Holdings has no effect on the direction of PennantPark Floating i.e., PennantPark Floating and Celsius Holdings go up and down completely randomly.
Pair Corralation between PennantPark Floating and Celsius Holdings
Given the investment horizon of 90 days PennantPark Floating Rate is expected to generate 0.19 times more return on investment than Celsius Holdings. However, PennantPark Floating Rate is 5.16 times less risky than Celsius Holdings. It trades about 0.02 of its potential returns per unit of risk. Celsius Holdings is currently generating about -0.06 per unit of risk. If you would invest 1,113 in PennantPark Floating Rate on September 1, 2024 and sell it today you would earn a total of 3.00 from holding PennantPark Floating Rate or generate 0.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PennantPark Floating Rate vs. Celsius Holdings
Performance |
| Timeline |
| PennantPark Floating Rate |
| Celsius Holdings |
PennantPark Floating and Celsius Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PennantPark Floating and Celsius Holdings
The main advantage of trading using opposite PennantPark Floating and Celsius Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PennantPark Floating position performs unexpectedly, Celsius Holdings 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 Celsius Holdings will offset losses from the drop in Celsius Holdings' long position.| PennantPark Floating vs. Visa Class A | PennantPark Floating vs. Diamond Hill Investment | PennantPark Floating vs. Distoken Acquisition | PennantPark Floating vs. Associated Capital Group |
| Celsius Holdings vs. Vita Coco | Celsius Holdings vs. Keurig Dr Pepper | Celsius Holdings vs. PepsiCo | Celsius Holdings vs. Coca Cola Femsa SAB |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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