Correlation Between PennantPark Floating and GameStop Corp
Can any of the company-specific risk be diversified away by investing in both PennantPark Floating and GameStop Corp 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 GameStop Corp 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 GameStop Corp, you can compare the effects of market volatilities on PennantPark Floating and GameStop Corp 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 GameStop Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of PennantPark Floating and GameStop Corp.
Diversification Opportunities for PennantPark Floating and GameStop Corp
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PennantPark and GameStop is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding PennantPark Floating Rate and GameStop Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GameStop 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 GameStop Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GameStop Corp has no effect on the direction of PennantPark Floating i.e., PennantPark Floating and GameStop Corp go up and down completely randomly.
Pair Corralation between PennantPark Floating and GameStop Corp
Given the investment horizon of 90 days PennantPark Floating is expected to generate 10.92 times less return on investment than GameStop Corp. But when comparing it to its historical volatility, PennantPark Floating Rate is 7.98 times less risky than GameStop Corp. It trades about 0.03 of its potential returns per unit of risk. GameStop Corp is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 2,650 in GameStop Corp on September 2, 2024 and sell it today you would earn a total of 255.00 from holding GameStop Corp or generate 9.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PennantPark Floating Rate vs. GameStop Corp
Performance |
| Timeline |
| PennantPark Floating Rate |
| GameStop Corp |
PennantPark Floating and GameStop Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PennantPark Floating and GameStop Corp
The main advantage of trading using opposite PennantPark Floating and GameStop Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PennantPark Floating position performs unexpectedly, GameStop Corp 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 GameStop Corp will offset losses from the drop in GameStop Corp'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 |
| GameStop Corp vs. RH | GameStop Corp vs. Dicks Sporting Goods | GameStop Corp vs. Best Buy Co | GameStop Corp vs. AutoZone |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |