Correlation Between PennantPark Floating and MQGAU
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By analyzing existing cross correlation between PennantPark Floating Rate and MQGAU 2871 14 JAN 33, you can compare the effects of market volatilities on PennantPark Floating and MQGAU 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 MQGAU. Check out your portfolio center. Please also check ongoing floating volatility patterns of PennantPark Floating and MQGAU.
Diversification Opportunities for PennantPark Floating and MQGAU
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PennantPark and MQGAU is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding PennantPark Floating Rate and MQGAU 2871 14 JAN 33 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MQGAU 2871 14 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 MQGAU. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MQGAU 2871 14 has no effect on the direction of PennantPark Floating i.e., PennantPark Floating and MQGAU go up and down completely randomly.
Pair Corralation between PennantPark Floating and MQGAU
Given the investment horizon of 90 days PennantPark Floating Rate is expected to generate 0.14 times more return on investment than MQGAU. However, PennantPark Floating Rate is 7.22 times less risky than MQGAU. It trades about -0.09 of its potential returns per unit of risk. MQGAU 2871 14 JAN 33 is currently generating about -0.29 per unit of risk. If you would invest 1,118 in PennantPark Floating Rate on September 12, 2024 and sell it today you would lose (13.00) from holding PennantPark Floating Rate or give up 1.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 42.86% |
| Values | Daily Returns |
PennantPark Floating Rate vs. MQGAU 2871 14 JAN 33
Performance |
| Timeline |
| PennantPark Floating Rate |
| MQGAU 2871 14 |
PennantPark Floating and MQGAU Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PennantPark Floating and MQGAU
The main advantage of trading using opposite PennantPark Floating and MQGAU positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PennantPark Floating position performs unexpectedly, MQGAU 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 MQGAU will offset losses from the drop in MQGAU's long position.| PennantPark Floating vs. Gladstone Investment | PennantPark Floating vs. Stellus Capital Investment | PennantPark Floating vs. Prospect Capital | PennantPark Floating vs. Gladstone Capital |
| MQGAU vs. Artisan Partners Asset | MQGAU vs. PennantPark Floating Rate | MQGAU vs. Triton International Limited | MQGAU vs. Western Union 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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