Correlation Between PennantPark Floating and 893574AK9
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By analyzing existing cross correlation between PennantPark Floating Rate and TRANSCONTINENTAL GAS PIPE, you can compare the effects of market volatilities on PennantPark Floating and 893574AK9 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 893574AK9. Check out your portfolio center. Please also check ongoing floating volatility patterns of PennantPark Floating and 893574AK9.
Diversification Opportunities for PennantPark Floating and 893574AK9
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between PennantPark and 893574AK9 is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding PennantPark Floating Rate and TRANSCONTINENTAL GAS PIPE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TRANSCONTINENTAL GAS PIPE 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 893574AK9. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TRANSCONTINENTAL GAS PIPE has no effect on the direction of PennantPark Floating i.e., PennantPark Floating and 893574AK9 go up and down completely randomly.
Pair Corralation between PennantPark Floating and 893574AK9
Given the investment horizon of 90 days PennantPark Floating Rate is expected to under-perform the 893574AK9. In addition to that, PennantPark Floating is 1.64 times more volatile than TRANSCONTINENTAL GAS PIPE. It trades about -0.14 of its total potential returns per unit of risk. TRANSCONTINENTAL GAS PIPE is currently generating about -0.24 per unit of volatility. If you would invest 9,772 in TRANSCONTINENTAL GAS PIPE on August 26, 2024 and sell it today you would lose (212.00) from holding TRANSCONTINENTAL GAS PIPE or give up 2.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 86.36% |
| Values | Daily Returns |
PennantPark Floating Rate vs. TRANSCONTINENTAL GAS PIPE
Performance |
| Timeline |
| PennantPark Floating Rate |
| TRANSCONTINENTAL GAS PIPE |
PennantPark Floating and 893574AK9 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PennantPark Floating and 893574AK9
The main advantage of trading using opposite PennantPark Floating and 893574AK9 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PennantPark Floating position performs unexpectedly, 893574AK9 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 893574AK9 will offset losses from the drop in 893574AK9's long position.| PennantPark Floating vs. PowerUp Acquisition Corp | PennantPark Floating vs. Aurora Innovation | PennantPark Floating vs. HUMANA INC | PennantPark Floating vs. Aquagold International |
| 893574AK9 vs. PennantPark Floating Rate | 893574AK9 vs. Amkor Technology | 893574AK9 vs. BioNTech SE | 893574AK9 vs. US Global Investors |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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