Correlation Between PennantPark Floating and DOMINION
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By analyzing existing cross correlation between PennantPark Floating Rate and DOMINION ENERGY INC, you can compare the effects of market volatilities on PennantPark Floating and DOMINION 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 DOMINION. Check out your portfolio center. Please also check ongoing floating volatility patterns of PennantPark Floating and DOMINION.
Diversification Opportunities for PennantPark Floating and DOMINION
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PennantPark and DOMINION is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding PennantPark Floating Rate and DOMINION ENERGY INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DOMINION ENERGY INC 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 DOMINION. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DOMINION ENERGY INC has no effect on the direction of PennantPark Floating i.e., PennantPark Floating and DOMINION go up and down completely randomly.
Pair Corralation between PennantPark Floating and DOMINION
Given the investment horizon of 90 days PennantPark Floating Rate is expected to under-perform the DOMINION. But the stock apears to be less risky and, when comparing its historical volatility, PennantPark Floating Rate is 10.16 times less risky than DOMINION. The stock trades about -0.03 of its potential returns per unit of risk. The DOMINION ENERGY INC is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 8,083 in DOMINION ENERGY INC on September 14, 2024 and sell it today you would earn a total of 19.00 from holding DOMINION ENERGY INC or generate 0.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 52.38% |
| Values | Daily Returns |
PennantPark Floating Rate vs. DOMINION ENERGY INC
Performance |
| Timeline |
| PennantPark Floating Rate |
| DOMINION ENERGY INC |
PennantPark Floating and DOMINION Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PennantPark Floating and DOMINION
The main advantage of trading using opposite PennantPark Floating and DOMINION positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PennantPark Floating position performs unexpectedly, DOMINION 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 DOMINION will offset losses from the drop in DOMINION'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 |
| DOMINION vs. Univest Pennsylvania | DOMINION vs. WiMi Hologram Cloud | DOMINION vs. PennantPark Floating Rate | DOMINION vs. Acco Brands |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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