Correlation Between PennantPark Floating and Supercom
Can any of the company-specific risk be diversified away by investing in both PennantPark Floating and Supercom 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 Supercom 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 Supercom, you can compare the effects of market volatilities on PennantPark Floating and Supercom 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 Supercom. Check out your portfolio center. Please also check ongoing floating volatility patterns of PennantPark Floating and Supercom.
Diversification Opportunities for PennantPark Floating and Supercom
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between PennantPark and Supercom is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding PennantPark Floating Rate and Supercom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Supercom 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 Supercom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Supercom has no effect on the direction of PennantPark Floating i.e., PennantPark Floating and Supercom go up and down completely randomly.
Pair Corralation between PennantPark Floating and Supercom
Given the investment horizon of 90 days PennantPark Floating Rate is expected to generate 0.08 times more return on investment than Supercom. However, PennantPark Floating Rate is 11.86 times less risky than Supercom. It trades about 0.07 of its potential returns per unit of risk. Supercom is currently generating about 0.0 per unit of risk. If you would invest 914.00 in PennantPark Floating Rate on September 12, 2024 and sell it today you would earn a total of 188.50 from holding PennantPark Floating Rate or generate 20.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PennantPark Floating Rate vs. Supercom
Performance |
| Timeline |
| PennantPark Floating Rate |
| Supercom |
PennantPark Floating and Supercom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PennantPark Floating and Supercom
The main advantage of trading using opposite PennantPark Floating and Supercom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PennantPark Floating position performs unexpectedly, Supercom 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 Supercom will offset losses from the drop in Supercom's long position.| PennantPark Floating vs. Stellus Capital Investment | PennantPark Floating vs. Prospect Capital | PennantPark Floating vs. Gladstone Capital | PennantPark Floating vs. Main Street Capital |
| Supercom vs. Zedcor Inc | Supercom vs. SSC Security Services | Supercom vs. Blue Line Protection | Supercom vs. Guardforce AI 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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