Correlation Between PennantPark Floating and 25179MBE2
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By analyzing existing cross correlation between PennantPark Floating Rate and DVN 5875 15 JUN 28, you can compare the effects of market volatilities on PennantPark Floating and 25179MBE2 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 25179MBE2. Check out your portfolio center. Please also check ongoing floating volatility patterns of PennantPark Floating and 25179MBE2.
Diversification Opportunities for PennantPark Floating and 25179MBE2
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between PennantPark and 25179MBE2 is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding PennantPark Floating Rate and DVN 5875 15 JUN 28 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DVN 5875 15 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 25179MBE2. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DVN 5875 15 has no effect on the direction of PennantPark Floating i.e., PennantPark Floating and 25179MBE2 go up and down completely randomly.
Pair Corralation between PennantPark Floating and 25179MBE2
Given the investment horizon of 90 days PennantPark Floating Rate is expected to under-perform the 25179MBE2. In addition to that, PennantPark Floating is 1.71 times more volatile than DVN 5875 15 JUN 28. It trades about -0.03 of its total potential returns per unit of risk. DVN 5875 15 JUN 28 is currently generating about -0.01 per unit of volatility. If you would invest 10,057 in DVN 5875 15 JUN 28 on September 14, 2024 and sell it today you would lose (9.00) from holding DVN 5875 15 JUN 28 or give up 0.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PennantPark Floating Rate vs. DVN 5875 15 JUN 28
Performance |
| Timeline |
| PennantPark Floating Rate |
| DVN 5875 15 |
PennantPark Floating and 25179MBE2 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PennantPark Floating and 25179MBE2
The main advantage of trading using opposite PennantPark Floating and 25179MBE2 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PennantPark Floating position performs unexpectedly, 25179MBE2 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 25179MBE2 will offset losses from the drop in 25179MBE2'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 |
| 25179MBE2 vs. Avis Budget Group | 25179MBE2 vs. CF Industries Holdings | 25179MBE2 vs. Ecolab Inc | 25179MBE2 vs. NL Industries |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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