Correlation Between PennantPark Floating and Genworth
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By analyzing existing cross correlation between PennantPark Floating Rate and Genworth Financial 7629, you can compare the effects of market volatilities on PennantPark Floating and Genworth 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 Genworth. Check out your portfolio center. Please also check ongoing floating volatility patterns of PennantPark Floating and Genworth.
Diversification Opportunities for PennantPark Floating and Genworth
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between PennantPark and Genworth is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding PennantPark Floating Rate and Genworth Financial 7629 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genworth Financial 7629 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 Genworth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genworth Financial 7629 has no effect on the direction of PennantPark Floating i.e., PennantPark Floating and Genworth go up and down completely randomly.
Pair Corralation between PennantPark Floating and Genworth
Given the investment horizon of 90 days PennantPark Floating Rate is expected to under-perform the Genworth. But the stock apears to be less risky and, when comparing its historical volatility, PennantPark Floating Rate is 1.56 times less risky than Genworth. The stock trades about -0.15 of its potential returns per unit of risk. The Genworth Financial 7629 is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 8,272 in Genworth Financial 7629 on August 29, 2024 and sell it today you would lose (120.00) from holding Genworth Financial 7629 or give up 1.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 65.22% |
| Values | Daily Returns |
PennantPark Floating Rate vs. Genworth Financial 7629
Performance |
| Timeline |
| PennantPark Floating Rate |
| Genworth Financial 7629 |
PennantPark Floating and Genworth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PennantPark Floating and Genworth
The main advantage of trading using opposite PennantPark Floating and Genworth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PennantPark Floating position performs unexpectedly, Genworth 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 Genworth will offset losses from the drop in Genworth's long position.| PennantPark Floating vs. Carlyle Group | PennantPark Floating vs. TPG Inc | PennantPark Floating vs. Carlyle Secured Lending | PennantPark Floating vs. Brookfield Corp |
| Genworth vs. Asbury Automotive Group | Genworth vs. PennantPark Floating Rate | Genworth vs. US Global Investors | Genworth vs. Getty Realty |
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 Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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