Correlation Between PennantPark Floating and Inflection Point
Can any of the company-specific risk be diversified away by investing in both PennantPark Floating and Inflection Point 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 Inflection Point 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 Inflection Point Acquisition, you can compare the effects of market volatilities on PennantPark Floating and Inflection Point 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 Inflection Point. Check out your portfolio center. Please also check ongoing floating volatility patterns of PennantPark Floating and Inflection Point.
Diversification Opportunities for PennantPark Floating and Inflection Point
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PennantPark and Inflection is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding PennantPark Floating Rate and Inflection Point Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inflection Point Acq 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 Inflection Point. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inflection Point Acq has no effect on the direction of PennantPark Floating i.e., PennantPark Floating and Inflection Point go up and down completely randomly.
Pair Corralation between PennantPark Floating and Inflection Point
Given the investment horizon of 90 days PennantPark Floating Rate is expected to generate 0.12 times more return on investment than Inflection Point. However, PennantPark Floating Rate is 8.3 times less risky than Inflection Point. It trades about 0.54 of its potential returns per unit of risk. Inflection Point Acquisition is currently generating about -0.01 per unit of risk. If you would invest 1,062 in PennantPark Floating Rate on October 23, 2024 and sell it today you would earn a total of 68.00 from holding PennantPark Floating Rate or generate 6.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
PennantPark Floating Rate vs. Inflection Point Acquisition
Performance |
| Timeline |
| PennantPark Floating Rate |
| Inflection Point Acq |
PennantPark Floating and Inflection Point Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PennantPark Floating and Inflection Point
The main advantage of trading using opposite PennantPark Floating and Inflection Point positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PennantPark Floating position performs unexpectedly, Inflection Point 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 Inflection Point will offset losses from the drop in Inflection Point'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 |
| Inflection Point vs. Datadog | Inflection Point vs. Bill Com Holdings | Inflection Point vs. NetSol Technologies | Inflection Point vs. ON24 Inc |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |