Correlation Between PennantPark Investment and II VI
Can any of the company-specific risk be diversified away by investing in both PennantPark Investment and II VI 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 II VI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PennantPark Investment and II VI Incorporated, you can compare the effects of market volatilities on PennantPark Investment and II VI 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 II VI. Check out your portfolio center. Please also check ongoing floating volatility patterns of PennantPark Investment and II VI.
Diversification Opportunities for PennantPark Investment and II VI
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PennantPark and IIVIP is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding PennantPark Investment and II VI Incorporated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on II VI 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 II VI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of II VI has no effect on the direction of PennantPark Investment i.e., PennantPark Investment and II VI go up and down completely randomly.
Pair Corralation between PennantPark Investment and II VI
If you would invest 701.00 in PennantPark Investment on November 2, 2024 and sell it today you would earn a total of 1.00 from holding PennantPark Investment or generate 0.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 5.26% |
| Values | Daily Returns |
PennantPark Investment vs. II VI Incorporated
Performance |
| Timeline |
| PennantPark Investment |
| II VI |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
PennantPark Investment and II VI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PennantPark Investment and II VI
The main advantage of trading using opposite PennantPark Investment and II VI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PennantPark Investment position performs unexpectedly, II VI 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 II VI will offset losses from the drop in II VI's 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 |
| II VI vs. NH Foods Ltd | II VI vs. Eldorado Gold Corp | II VI vs. Marimaca Copper Corp | II VI vs. Ingredion Incorporated |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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