Correlation Between PennantPark Floating and Huabao International
Can any of the company-specific risk be diversified away by investing in both PennantPark Floating and Huabao International 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 Huabao International 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 Huabao International Holdings, you can compare the effects of market volatilities on PennantPark Floating and Huabao International 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 Huabao International. Check out your portfolio center. Please also check ongoing floating volatility patterns of PennantPark Floating and Huabao International.
Diversification Opportunities for PennantPark Floating and Huabao International
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PennantPark and Huabao is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PennantPark Floating Rate and Huabao International Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huabao International 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 Huabao International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huabao International has no effect on the direction of PennantPark Floating i.e., PennantPark Floating and Huabao International go up and down completely randomly.
Pair Corralation between PennantPark Floating and Huabao International
If you would invest 809.00 in PennantPark Floating Rate on December 4, 2024 and sell it today you would earn a total of 304.00 from holding PennantPark Floating Rate or generate 37.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
PennantPark Floating Rate vs. Huabao International Holdings
Performance |
| Timeline |
| PennantPark Floating Rate |
| Huabao International |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
PennantPark Floating and Huabao International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PennantPark Floating and Huabao International
The main advantage of trading using opposite PennantPark Floating and Huabao International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PennantPark Floating position performs unexpectedly, Huabao International 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 Huabao International will offset losses from the drop in Huabao International'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 |
| Huabao International vs. The Joint Corp | Huabao International vs. WT Offshore | Huabao International vs. Golden Energy Offshore | Huabao International vs. Alphatec Holdings |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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