Correlation Between PennantPark Floating and SEAGATE
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By analyzing existing cross correlation between PennantPark Floating Rate and SEAGATE HDD CAYMAN, you can compare the effects of market volatilities on PennantPark Floating and SEAGATE 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 SEAGATE. Check out your portfolio center. Please also check ongoing floating volatility patterns of PennantPark Floating and SEAGATE.
Diversification Opportunities for PennantPark Floating and SEAGATE
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between PennantPark and SEAGATE is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding PennantPark Floating Rate and SEAGATE HDD CAYMAN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SEAGATE HDD CAYMAN 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 SEAGATE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SEAGATE HDD CAYMAN has no effect on the direction of PennantPark Floating i.e., PennantPark Floating and SEAGATE go up and down completely randomly.
Pair Corralation between PennantPark Floating and SEAGATE
Given the investment horizon of 90 days PennantPark Floating Rate is expected to generate 1.12 times more return on investment than SEAGATE. However, PennantPark Floating is 1.12 times more volatile than SEAGATE HDD CAYMAN. It trades about 0.02 of its potential returns per unit of risk. SEAGATE HDD CAYMAN is currently generating about 0.01 per unit of risk. If you would invest 1,078 in PennantPark Floating Rate on September 14, 2024 and sell it today you would earn a total of 25.00 from holding PennantPark Floating Rate or generate 2.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PennantPark Floating Rate vs. SEAGATE HDD CAYMAN
Performance |
| Timeline |
| PennantPark Floating Rate |
| SEAGATE HDD CAYMAN |
PennantPark Floating and SEAGATE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PennantPark Floating and SEAGATE
The main advantage of trading using opposite PennantPark Floating and SEAGATE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PennantPark Floating position performs unexpectedly, SEAGATE 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 SEAGATE will offset losses from the drop in SEAGATE's long position.| PennantPark Floating vs. Visa Class A | PennantPark Floating vs. Diamond Hill Investment | PennantPark Floating vs. Distoken Acquisition | PennantPark Floating vs. AllianceBernstein Holding LP |
| SEAGATE vs. SEI Investments | SEAGATE vs. PennantPark Floating Rate | SEAGATE vs. Chester Mining | SEAGATE vs. Xiabuxiabu Catering Management |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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