Correlation Between Panglobal Brands and PennantPark Floating
Can any of the company-specific risk be diversified away by investing in both Panglobal Brands and PennantPark Floating at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Panglobal Brands and PennantPark Floating into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Panglobal Brands and PennantPark Floating Rate, you can compare the effects of market volatilities on Panglobal Brands and PennantPark Floating 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 Panglobal Brands with a short position of PennantPark Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panglobal Brands and PennantPark Floating.
Diversification Opportunities for Panglobal Brands and PennantPark Floating
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Panglobal and PennantPark is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Panglobal Brands and PennantPark Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PennantPark Floating Rate and Panglobal Brands 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 Panglobal Brands are associated (or correlated) with PennantPark Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PennantPark Floating Rate has no effect on the direction of Panglobal Brands i.e., Panglobal Brands and PennantPark Floating go up and down completely randomly.
Pair Corralation between Panglobal Brands and PennantPark Floating
If you would invest 876.00 in PennantPark Floating Rate on September 12, 2024 and sell it today you would earn a total of 226.50 from holding PennantPark Floating Rate or generate 25.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 10.1% |
| Values | Daily Returns |
Panglobal Brands vs. PennantPark Floating Rate
Performance |
| Timeline |
| Panglobal Brands |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| PennantPark Floating Rate |
Panglobal Brands and PennantPark Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Panglobal Brands and PennantPark Floating
The main advantage of trading using opposite Panglobal Brands and PennantPark Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panglobal Brands position performs unexpectedly, PennantPark Floating 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 PennantPark Floating will offset losses from the drop in PennantPark Floating's long position.| Panglobal Brands vs. Delek Drilling | Panglobal Brands vs. Timken Company | Panglobal Brands vs. Steven Madden | Panglobal Brands vs. Seadrill Limited |
| PennantPark Floating vs. Gladstone Investment | PennantPark Floating vs. Stellus Capital Investment | PennantPark Floating vs. Prospect Capital | PennantPark Floating vs. Gladstone Capital |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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