Correlation Between PennantPark Floating and Almacenes Xito
Can any of the company-specific risk be diversified away by investing in both PennantPark Floating and Almacenes Xito 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 Almacenes Xito 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 Almacenes xito SA, you can compare the effects of market volatilities on PennantPark Floating and Almacenes Xito 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 Almacenes Xito. Check out your portfolio center. Please also check ongoing floating volatility patterns of PennantPark Floating and Almacenes Xito.
Diversification Opportunities for PennantPark Floating and Almacenes Xito
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between PennantPark and Almacenes is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding PennantPark Floating Rate and Almacenes xito SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Almacenes xito 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 Almacenes Xito. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Almacenes xito SA has no effect on the direction of PennantPark Floating i.e., PennantPark Floating and Almacenes Xito go up and down completely randomly.
Pair Corralation between PennantPark Floating and Almacenes Xito
Given the investment horizon of 90 days PennantPark Floating Rate is expected to generate 0.34 times more return on investment than Almacenes Xito. However, PennantPark Floating Rate is 2.96 times less risky than Almacenes Xito. It trades about 0.0 of its potential returns per unit of risk. Almacenes xito SA is currently generating about -0.02 per unit of risk. If you would invest 1,114 in PennantPark Floating Rate on October 7, 2024 and sell it today you would lose (5.00) from holding PennantPark Floating Rate or give up 0.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PennantPark Floating Rate vs. Almacenes xito SA
Performance |
| Timeline |
| PennantPark Floating Rate |
| Almacenes xito SA |
PennantPark Floating and Almacenes Xito Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PennantPark Floating and Almacenes Xito
The main advantage of trading using opposite PennantPark Floating and Almacenes Xito positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PennantPark Floating position performs unexpectedly, Almacenes Xito 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 Almacenes Xito will offset losses from the drop in Almacenes Xito's long position.| PennantPark Floating vs. Gladstone Investment | PennantPark Floating vs. Horizon Technology Finance | PennantPark Floating vs. Stellus Capital Investment | PennantPark Floating vs. Prospect Capital |
| Almacenes Xito vs. Dillards | Almacenes Xito vs. Nordstrom | Almacenes Xito vs. Kohls Corp | Almacenes Xito vs. Grocery Outlet Holding |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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