Correlation Between PennantPark Floating and Silvercrest Asset
Can any of the company-specific risk be diversified away by investing in both PennantPark Floating and Silvercrest Asset 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 Silvercrest Asset 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 Silvercrest Asset Management, you can compare the effects of market volatilities on PennantPark Floating and Silvercrest Asset 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 Silvercrest Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of PennantPark Floating and Silvercrest Asset.
Diversification Opportunities for PennantPark Floating and Silvercrest Asset
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PennantPark and Silvercrest is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding PennantPark Floating Rate and Silvercrest Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silvercrest Asset 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 Silvercrest Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silvercrest Asset has no effect on the direction of PennantPark Floating i.e., PennantPark Floating and Silvercrest Asset go up and down completely randomly.
Pair Corralation between PennantPark Floating and Silvercrest Asset
Given the investment horizon of 90 days PennantPark Floating Rate is expected to generate 0.49 times more return on investment than Silvercrest Asset. However, PennantPark Floating Rate is 2.03 times less risky than Silvercrest Asset. It trades about 0.05 of its potential returns per unit of risk. Silvercrest Asset Management is currently generating about 0.02 per unit of risk. If you would invest 861.00 in PennantPark Floating Rate on September 19, 2024 and sell it today you would earn a total of 220.00 from holding PennantPark Floating Rate or generate 25.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PennantPark Floating Rate vs. Silvercrest Asset Management
Performance |
| Timeline |
| PennantPark Floating Rate |
| Silvercrest Asset |
PennantPark Floating and Silvercrest Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PennantPark Floating and Silvercrest Asset
The main advantage of trading using opposite PennantPark Floating and Silvercrest Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PennantPark Floating position performs unexpectedly, Silvercrest Asset 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 Silvercrest Asset will offset losses from the drop in Silvercrest Asset's long position.| PennantPark Floating vs. Visa Class A | PennantPark Floating vs. Deutsche Bank AG | PennantPark Floating vs. Dynex Capital |
| Silvercrest Asset vs. Brightsphere Investment Group | Silvercrest Asset vs. DWS Municipal Income | Silvercrest Asset vs. Blackrock Muni Intermediate | Silvercrest Asset vs. Blackrock Muniyield |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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