Correlation Between PennantPark Floating and ESGEN Acquisition
Can any of the company-specific risk be diversified away by investing in both PennantPark Floating and ESGEN Acquisition 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 ESGEN Acquisition 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 ESGEN Acquisition Corp, you can compare the effects of market volatilities on PennantPark Floating and ESGEN Acquisition 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 ESGEN Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of PennantPark Floating and ESGEN Acquisition.
Diversification Opportunities for PennantPark Floating and ESGEN Acquisition
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PennantPark and ESGEN is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding PennantPark Floating Rate and ESGEN Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ESGEN Acquisition Corp 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 ESGEN Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ESGEN Acquisition Corp has no effect on the direction of PennantPark Floating i.e., PennantPark Floating and ESGEN Acquisition go up and down completely randomly.
Pair Corralation between PennantPark Floating and ESGEN Acquisition
If you would invest 1,117 in PennantPark Floating Rate on October 26, 2024 and sell it today you would earn a total of 9.00 from holding PennantPark Floating Rate or generate 0.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 1.69% |
| Values | Daily Returns |
PennantPark Floating Rate vs. ESGEN Acquisition Corp
Performance |
| Timeline |
| PennantPark Floating Rate |
| ESGEN Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
PennantPark Floating and ESGEN Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PennantPark Floating and ESGEN Acquisition
The main advantage of trading using opposite PennantPark Floating and ESGEN Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PennantPark Floating position performs unexpectedly, ESGEN Acquisition 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 ESGEN Acquisition will offset losses from the drop in ESGEN Acquisition's long position.| PennantPark Floating vs. KKR Co LP | PennantPark Floating vs. Carlyle Group | PennantPark Floating vs. Blackstone Group | PennantPark Floating vs. Blue Owl Capital |
| ESGEN Acquisition vs. Artisan Partners Asset | ESGEN Acquisition vs. PennantPark Floating Rate | ESGEN Acquisition vs. East West Bancorp | ESGEN Acquisition vs. CLPS 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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