Correlation Between PennantPark Floating and Grupo Televisa
Can any of the company-specific risk be diversified away by investing in both PennantPark Floating and Grupo Televisa 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 Grupo Televisa 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 Grupo Televisa SAB, you can compare the effects of market volatilities on PennantPark Floating and Grupo Televisa 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 Grupo Televisa. Check out your portfolio center. Please also check ongoing floating volatility patterns of PennantPark Floating and Grupo Televisa.
Diversification Opportunities for PennantPark Floating and Grupo Televisa
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between PennantPark and Grupo is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding PennantPark Floating Rate and Grupo Televisa SAB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Televisa SAB 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 Grupo Televisa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Televisa SAB has no effect on the direction of PennantPark Floating i.e., PennantPark Floating and Grupo Televisa go up and down completely randomly.
Pair Corralation between PennantPark Floating and Grupo Televisa
Given the investment horizon of 90 days PennantPark Floating Rate is expected to generate 0.31 times more return on investment than Grupo Televisa. However, PennantPark Floating Rate is 3.21 times less risky than Grupo Televisa. It trades about 0.07 of its potential returns per unit of risk. Grupo Televisa SAB is currently generating about -0.03 per unit of risk. If you would invest 809.00 in PennantPark Floating Rate on December 4, 2024 and sell it today you would earn a total of 304.00 from holding PennantPark Floating Rate or generate 37.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PennantPark Floating Rate vs. Grupo Televisa SAB
Performance |
| Timeline |
| PennantPark Floating Rate |
| Grupo Televisa SAB |
PennantPark Floating and Grupo Televisa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PennantPark Floating and Grupo Televisa
The main advantage of trading using opposite PennantPark Floating and Grupo Televisa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PennantPark Floating position performs unexpectedly, Grupo Televisa 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 Grupo Televisa will offset losses from the drop in Grupo Televisa'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 |
| Grupo Televisa vs. Telefonica Brasil SA | Grupo Televisa vs. Telefonica SA ADR | Grupo Televisa vs. Liberty Broadband Srs | Grupo Televisa vs. SK Telecom 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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