Correlation Between PennantPark Floating and Proficient Auto
Can any of the company-specific risk be diversified away by investing in both PennantPark Floating and Proficient Auto 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 Proficient Auto 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 Proficient Auto Logistics,, you can compare the effects of market volatilities on PennantPark Floating and Proficient Auto 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 Proficient Auto. Check out your portfolio center. Please also check ongoing floating volatility patterns of PennantPark Floating and Proficient Auto.
Diversification Opportunities for PennantPark Floating and Proficient Auto
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PennantPark and Proficient is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PennantPark Floating Rate and Proficient Auto Logistics, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Proficient Auto Logi 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 Proficient Auto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Proficient Auto Logi has no effect on the direction of PennantPark Floating i.e., PennantPark Floating and Proficient Auto go up and down completely randomly.
Pair Corralation between PennantPark Floating and Proficient Auto
Given the investment horizon of 90 days PennantPark Floating Rate is expected to generate 0.25 times more return on investment than Proficient Auto. However, PennantPark Floating Rate is 4.06 times less risky than Proficient Auto. It trades about 0.05 of its potential returns per unit of risk. Proficient Auto Logistics, is currently generating about -0.05 per unit of risk. If you would invest 1,012 in PennantPark Floating Rate on September 2, 2024 and sell it today you would earn a total of 104.00 from holding PennantPark Floating Rate or generate 10.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 57.66% |
| Values | Daily Returns |
PennantPark Floating Rate vs. Proficient Auto Logistics,
Performance |
| Timeline |
| PennantPark Floating Rate |
| Proficient Auto Logi |
PennantPark Floating and Proficient Auto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PennantPark Floating and Proficient Auto
The main advantage of trading using opposite PennantPark Floating and Proficient Auto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PennantPark Floating position performs unexpectedly, Proficient Auto 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 Proficient Auto will offset losses from the drop in Proficient Auto'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 |
| Proficient Auto vs. Sea | Proficient Auto vs. Simpson Manufacturing | Proficient Auto vs. LB Foster | Proficient Auto vs. Meiwu Technology 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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