Correlation Between PennantPark Floating and FEDEX
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By analyzing existing cross correlation between PennantPark Floating Rate and FEDEX P, you can compare the effects of market volatilities on PennantPark Floating and FEDEX 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 FEDEX. Check out your portfolio center. Please also check ongoing floating volatility patterns of PennantPark Floating and FEDEX.
Diversification Opportunities for PennantPark Floating and FEDEX
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PennantPark and FEDEX is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding PennantPark Floating Rate and FEDEX P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FEDEX P 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 FEDEX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FEDEX P has no effect on the direction of PennantPark Floating i.e., PennantPark Floating and FEDEX go up and down completely randomly.
Pair Corralation between PennantPark Floating and FEDEX
Given the investment horizon of 90 days PennantPark Floating is expected to generate 87.49 times less return on investment than FEDEX. But when comparing it to its historical volatility, PennantPark Floating Rate is 50.76 times less risky than FEDEX. It trades about 0.04 of its potential returns per unit of risk. FEDEX P is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 7,469 in FEDEX P on August 30, 2024 and sell it today you would earn a total of 37.00 from holding FEDEX P or generate 0.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 87.07% |
| Values | Daily Returns |
PennantPark Floating Rate vs. FEDEX P
Performance |
| Timeline |
| PennantPark Floating Rate |
| FEDEX P |
PennantPark Floating and FEDEX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PennantPark Floating and FEDEX
The main advantage of trading using opposite PennantPark Floating and FEDEX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PennantPark Floating position performs unexpectedly, FEDEX 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 FEDEX will offset losses from the drop in FEDEX's long position.| PennantPark Floating vs. TPG Inc | PennantPark Floating vs. Carlyle Secured Lending | PennantPark Floating vs. Brookfield Corp |
| FEDEX vs. United Homes Group | FEDEX vs. MI Homes | FEDEX vs. RBC Bearings Incorporated | FEDEX vs. United Parks Resorts |
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.
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