Correlation Between PennantPark Floating and Coursera
Can any of the company-specific risk be diversified away by investing in both PennantPark Floating and Coursera 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 Coursera 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 Coursera, you can compare the effects of market volatilities on PennantPark Floating and Coursera 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 Coursera. Check out your portfolio center. Please also check ongoing floating volatility patterns of PennantPark Floating and Coursera.
Diversification Opportunities for PennantPark Floating and Coursera
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between PennantPark and Coursera is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding PennantPark Floating Rate and Coursera in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coursera 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 Coursera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coursera has no effect on the direction of PennantPark Floating i.e., PennantPark Floating and Coursera go up and down completely randomly.
Pair Corralation between PennantPark Floating and Coursera
Given the investment horizon of 90 days PennantPark Floating Rate is expected to generate 0.37 times more return on investment than Coursera. However, PennantPark Floating Rate is 2.71 times less risky than Coursera. It trades about 0.03 of its potential returns per unit of risk. Coursera is currently generating about -0.01 per unit of risk. If you would invest 922.00 in PennantPark Floating Rate on September 4, 2024 and sell it today you would earn a total of 177.00 from holding PennantPark Floating Rate or generate 19.2% 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. Coursera
Performance |
| Timeline |
| PennantPark Floating Rate |
| Coursera |
PennantPark Floating and Coursera Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PennantPark Floating and Coursera
The main advantage of trading using opposite PennantPark Floating and Coursera positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PennantPark Floating position performs unexpectedly, Coursera 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 Coursera will offset losses from the drop in Coursera's 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 |
| Coursera vs. Chegg Inc | Coursera vs. Skillsoft Corp | Coursera vs. Laureate Education | Coursera vs. Udemy Inc |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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