Correlation Between PennantPark Investment and Cimpress
Can any of the company-specific risk be diversified away by investing in both PennantPark Investment and Cimpress 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 PennantPark Investment and Cimpress into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PennantPark Investment and Cimpress NV, you can compare the effects of market volatilities on PennantPark Investment and Cimpress 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 Investment with a short position of Cimpress. Check out your portfolio center. Please also check ongoing floating volatility patterns of PennantPark Investment and Cimpress.
Diversification Opportunities for PennantPark Investment and Cimpress
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PennantPark and Cimpress is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding PennantPark Investment and Cimpress NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cimpress NV and PennantPark Investment 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 Investment are associated (or correlated) with Cimpress. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cimpress NV has no effect on the direction of PennantPark Investment i.e., PennantPark Investment and Cimpress go up and down completely randomly.
Pair Corralation between PennantPark Investment and Cimpress
Given the investment horizon of 90 days PennantPark Investment is expected to generate 0.19 times more return on investment than Cimpress. However, PennantPark Investment is 5.32 times less risky than Cimpress. It trades about 0.33 of its potential returns per unit of risk. Cimpress NV is currently generating about -0.6 per unit of risk. If you would invest 687.00 in PennantPark Investment on November 28, 2024 and sell it today you would earn a total of 31.50 from holding PennantPark Investment or generate 4.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PennantPark Investment vs. Cimpress NV
Performance |
| Timeline |
| PennantPark Investment |
| Cimpress NV |
PennantPark Investment and Cimpress Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PennantPark Investment and Cimpress
The main advantage of trading using opposite PennantPark Investment and Cimpress positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PennantPark Investment position performs unexpectedly, Cimpress 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 Cimpress will offset losses from the drop in Cimpress' long position.| PennantPark Investment vs. Sixth Street Specialty | PennantPark Investment vs. New Mountain Finance | PennantPark Investment vs. Carlyle Secured Lending | PennantPark Investment vs. BlackRock TCP Capital |
| Cimpress vs. Deluxe | Cimpress vs. Omnicom Group | Cimpress vs. Emerald Expositions Events | Cimpress vs. QuinStreet |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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