Correlation Between PennantPark Floating and Space-Communication
Can any of the company-specific risk be diversified away by investing in both PennantPark Floating and Space-Communication 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 Space-Communication 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 Space Communication, you can compare the effects of market volatilities on PennantPark Floating and Space-Communication 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 Space-Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of PennantPark Floating and Space-Communication.
Diversification Opportunities for PennantPark Floating and Space-Communication
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PennantPark and Space-Communication is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PennantPark Floating Rate and Space Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Space Communication 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 Space-Communication. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Space Communication has no effect on the direction of PennantPark Floating i.e., PennantPark Floating and Space-Communication go up and down completely randomly.
Pair Corralation between PennantPark Floating and Space-Communication
Given the investment horizon of 90 days PennantPark Floating Rate is expected to generate 0.27 times more return on investment than Space-Communication. However, PennantPark Floating Rate is 3.74 times less risky than Space-Communication. It trades about 0.05 of its potential returns per unit of risk. Space Communication is currently generating about -0.04 per unit of risk. If you would invest 883.00 in PennantPark Floating Rate on November 7, 2024 and sell it today you would earn a total of 227.00 from holding PennantPark Floating Rate or generate 25.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.2% |
| Values | Daily Returns |
PennantPark Floating Rate vs. Space Communication
Performance |
| Timeline |
| PennantPark Floating Rate |
| Space Communication |
PennantPark Floating and Space-Communication Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PennantPark Floating and Space-Communication
The main advantage of trading using opposite PennantPark Floating and Space-Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PennantPark Floating position performs unexpectedly, Space-Communication 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 Space-Communication will offset losses from the drop in Space-Communication'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 |
| Space-Communication vs. Yirendai | Space-Communication vs. PennantPark Floating Rate | Space-Communication vs. KVH Industries | Space-Communication vs. Senmiao Technology |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |