Correlation Between PennantPark Floating and Imax Corp
Can any of the company-specific risk be diversified away by investing in both PennantPark Floating and Imax 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 Imax 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 Imax Corp, you can compare the effects of market volatilities on PennantPark Floating and Imax 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 Imax Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of PennantPark Floating and Imax Corp.
Diversification Opportunities for PennantPark Floating and Imax Corp
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PennantPark and Imax is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding PennantPark Floating Rate and Imax Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Imax 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 Imax Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Imax Corp has no effect on the direction of PennantPark Floating i.e., PennantPark Floating and Imax Corp go up and down completely randomly.
Pair Corralation between PennantPark Floating and Imax Corp
Given the investment horizon of 90 days PennantPark Floating Rate is expected to generate 0.63 times more return on investment than Imax Corp. However, PennantPark Floating Rate is 1.59 times less risky than Imax Corp. It trades about 0.14 of its potential returns per unit of risk. Imax Corp is currently generating about -0.07 per unit of risk. If you would invest 1,095 in PennantPark Floating Rate on November 5, 2024 and sell it today you would earn a total of 25.00 from holding PennantPark Floating Rate or generate 2.28% 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. Imax Corp
Performance |
| Timeline |
| PennantPark Floating Rate |
| Imax Corp |
PennantPark Floating and Imax Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PennantPark Floating and Imax Corp
The main advantage of trading using opposite PennantPark Floating and Imax Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PennantPark Floating position performs unexpectedly, Imax 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 Imax Corp will offset losses from the drop in Imax 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 |
| Imax Corp vs. Marcus | Imax Corp vs. Dave Busters Entertainment | Imax Corp vs. AMC Networks | Imax Corp vs. News Corp A |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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