Correlation Between PennantPark Floating and Infrastructure
Can any of the company-specific risk be diversified away by investing in both PennantPark Floating and Infrastructure 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 Infrastructure 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 Infrastructure And Energy, you can compare the effects of market volatilities on PennantPark Floating and Infrastructure 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 Infrastructure. Check out your portfolio center. Please also check ongoing floating volatility patterns of PennantPark Floating and Infrastructure.
Diversification Opportunities for PennantPark Floating and Infrastructure
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PennantPark and Infrastructure is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PennantPark Floating Rate and Infrastructure And Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Infrastructure And Energy 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 Infrastructure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Infrastructure And Energy has no effect on the direction of PennantPark Floating i.e., PennantPark Floating and Infrastructure go up and down completely randomly.
Pair Corralation between PennantPark Floating and Infrastructure
If you would invest 1,089 in PennantPark Floating Rate on November 3, 2024 and sell it today you would earn a total of 31.00 from holding PennantPark Floating Rate or generate 2.85% 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. Infrastructure And Energy
Performance |
| Timeline |
| PennantPark Floating Rate |
| Infrastructure And Energy |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
PennantPark Floating and Infrastructure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PennantPark Floating and Infrastructure
The main advantage of trading using opposite PennantPark Floating and Infrastructure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PennantPark Floating position performs unexpectedly, Infrastructure 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 Infrastructure will offset losses from the drop in Infrastructure'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 |
| Infrastructure vs. Zhihu Inc ADR | Infrastructure vs. Sphere Entertainment Co | Infrastructure vs. Boston Properties | Infrastructure vs. Corsair Gaming |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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