Correlation Between PennantPark Floating and Mechel OAO
Can any of the company-specific risk be diversified away by investing in both PennantPark Floating and Mechel OAO 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 Mechel OAO 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 Mechel OAO, you can compare the effects of market volatilities on PennantPark Floating and Mechel OAO 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 Mechel OAO. Check out your portfolio center. Please also check ongoing floating volatility patterns of PennantPark Floating and Mechel OAO.
Diversification Opportunities for PennantPark Floating and Mechel OAO
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between PennantPark and Mechel is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding PennantPark Floating Rate and Mechel OAO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mechel OAO 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 Mechel OAO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mechel OAO has no effect on the direction of PennantPark Floating i.e., PennantPark Floating and Mechel OAO go up and down completely randomly.
Pair Corralation between PennantPark Floating and Mechel OAO
If you would invest 1,067 in PennantPark Floating Rate on September 14, 2024 and sell it today you would earn a total of 34.50 from holding PennantPark Floating Rate or generate 3.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 0.0% |
| Values | Daily Returns |
PennantPark Floating Rate vs. Mechel OAO
Performance |
| Timeline |
| PennantPark Floating Rate |
| Mechel OAO |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
PennantPark Floating and Mechel OAO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PennantPark Floating and Mechel OAO
The main advantage of trading using opposite PennantPark Floating and Mechel OAO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PennantPark Floating position performs unexpectedly, Mechel OAO 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 Mechel OAO will offset losses from the drop in Mechel OAO'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 |
| Mechel OAO vs. RadNet Inc | Mechel OAO vs. Lipocine | Mechel OAO vs. Pinterest | Mechel OAO vs. Sphere Entertainment Co |
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
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |