Correlation Between PennantPark Investment and Sealed Air
Can any of the company-specific risk be diversified away by investing in both PennantPark Investment and Sealed Air 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 Sealed Air into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PennantPark Investment and Sealed Air, you can compare the effects of market volatilities on PennantPark Investment and Sealed Air 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 Sealed Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of PennantPark Investment and Sealed Air.
Diversification Opportunities for PennantPark Investment and Sealed Air
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between PennantPark and Sealed is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding PennantPark Investment and Sealed Air in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sealed Air 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 Sealed Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sealed Air has no effect on the direction of PennantPark Investment i.e., PennantPark Investment and Sealed Air go up and down completely randomly.
Pair Corralation between PennantPark Investment and Sealed Air
Given the investment horizon of 90 days PennantPark Investment is expected to generate 0.62 times more return on investment than Sealed Air. However, PennantPark Investment is 1.6 times less risky than Sealed Air. It trades about 0.07 of its potential returns per unit of risk. Sealed Air is currently generating about -0.02 per unit of risk. If you would invest 445.00 in PennantPark Investment on September 4, 2024 and sell it today you would earn a total of 226.00 from holding PennantPark Investment or generate 50.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PennantPark Investment vs. Sealed Air
Performance |
| Timeline |
| PennantPark Investment |
| Sealed Air |
PennantPark Investment and Sealed Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PennantPark Investment and Sealed Air
The main advantage of trading using opposite PennantPark Investment and Sealed Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PennantPark Investment position performs unexpectedly, Sealed Air 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 Sealed Air will offset losses from the drop in Sealed Air'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 |
| Sealed Air vs. Avery Dennison Corp | Sealed Air vs. International Paper | Sealed Air vs. Sonoco Products | Sealed Air vs. Packaging Corp of |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |