Correlation Between PennantPark Floating and OS Therapies
Can any of the company-specific risk be diversified away by investing in both PennantPark Floating and OS Therapies 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 OS Therapies 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 OS Therapies Incorporated, you can compare the effects of market volatilities on PennantPark Floating and OS Therapies 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 OS Therapies. Check out your portfolio center. Please also check ongoing floating volatility patterns of PennantPark Floating and OS Therapies.
Diversification Opportunities for PennantPark Floating and OS Therapies
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between PennantPark and OSTX is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding PennantPark Floating Rate and OS Therapies Incorporated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OS Therapies 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 OS Therapies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OS Therapies has no effect on the direction of PennantPark Floating i.e., PennantPark Floating and OS Therapies go up and down completely randomly.
Pair Corralation between PennantPark Floating and OS Therapies
Given the investment horizon of 90 days PennantPark Floating is expected to generate 12.45 times less return on investment than OS Therapies. But when comparing it to its historical volatility, PennantPark Floating Rate is 19.23 times less risky than OS Therapies. It trades about 0.22 of its potential returns per unit of risk. OS Therapies Incorporated is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 348.00 in OS Therapies Incorporated on October 17, 2024 and sell it today you would earn a total of 88.00 from holding OS Therapies Incorporated or generate 25.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PennantPark Floating Rate vs. OS Therapies Incorporated
Performance |
| Timeline |
| PennantPark Floating Rate |
| OS Therapies |
PennantPark Floating and OS Therapies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PennantPark Floating and OS Therapies
The main advantage of trading using opposite PennantPark Floating and OS Therapies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PennantPark Floating position performs unexpectedly, OS Therapies 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 OS Therapies will offset losses from the drop in OS Therapies' long position.| PennantPark Floating vs. Gladstone Investment | PennantPark Floating vs. Horizon Technology Finance | PennantPark Floating vs. Stellus Capital Investment | PennantPark Floating vs. Prospect Capital |
| OS Therapies vs. Compania Cervecerias Unidas | OS Therapies vs. PennantPark Floating Rate | OS Therapies vs. Franklin Credit Management | OS Therapies vs. Monster Beverage Corp |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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