Correlation Between PennantPark Floating and Molekule
Can any of the company-specific risk be diversified away by investing in both PennantPark Floating and Molekule 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 Molekule 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 Molekule Group, you can compare the effects of market volatilities on PennantPark Floating and Molekule 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 Molekule. Check out your portfolio center. Please also check ongoing floating volatility patterns of PennantPark Floating and Molekule.
Diversification Opportunities for PennantPark Floating and Molekule
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between PennantPark and Molekule is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding PennantPark Floating Rate and Molekule Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Molekule Group 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 Molekule. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Molekule Group has no effect on the direction of PennantPark Floating i.e., PennantPark Floating and Molekule go up and down completely randomly.
Pair Corralation between PennantPark Floating and Molekule
Given the investment horizon of 90 days PennantPark Floating is expected to generate 14.85 times less return on investment than Molekule. But when comparing it to its historical volatility, PennantPark Floating Rate is 6.99 times less risky than Molekule. It trades about 0.06 of its potential returns per unit of risk. Molekule Group is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 157.00 in Molekule Group on August 27, 2024 and sell it today you would earn a total of 68.00 from holding Molekule Group or generate 43.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 13.74% |
| Values | Daily Returns |
PennantPark Floating Rate vs. Molekule Group
Performance |
| Timeline |
| PennantPark Floating Rate |
| Molekule Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
PennantPark Floating and Molekule Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PennantPark Floating and Molekule
The main advantage of trading using opposite PennantPark Floating and Molekule positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PennantPark Floating position performs unexpectedly, Molekule 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 Molekule will offset losses from the drop in Molekule's long position.| PennantPark Floating vs. PowerUp Acquisition Corp | PennantPark Floating vs. Aurora Innovation | PennantPark Floating vs. HUMANA INC | PennantPark Floating vs. Aquagold International |
| Molekule vs. Procter Gamble | Molekule vs. PennantPark Floating Rate | Molekule vs. Church Dwight | Molekule vs. Sonida Senior Living |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |