Correlation Between PennantPark Investment and Summit Environmental
Can any of the company-specific risk be diversified away by investing in both PennantPark Investment and Summit Environmental 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 Summit Environmental into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PennantPark Investment and Summit Environmental, you can compare the effects of market volatilities on PennantPark Investment and Summit Environmental 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 Summit Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of PennantPark Investment and Summit Environmental.
Diversification Opportunities for PennantPark Investment and Summit Environmental
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PennantPark and Summit is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PennantPark Investment and Summit Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Summit Environmental 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 Summit Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Summit Environmental has no effect on the direction of PennantPark Investment i.e., PennantPark Investment and Summit Environmental go up and down completely randomly.
Pair Corralation between PennantPark Investment and Summit Environmental
If you would invest 695.00 in PennantPark Investment on August 28, 2024 and sell it today you would lose (1.00) from holding PennantPark Investment or give up 0.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PennantPark Investment vs. Summit Environmental
Performance |
| Timeline |
| PennantPark Investment |
| Summit Environmental |
PennantPark Investment and Summit Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PennantPark Investment and Summit Environmental
The main advantage of trading using opposite PennantPark Investment and Summit Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PennantPark Investment position performs unexpectedly, Summit Environmental 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 Summit Environmental will offset losses from the drop in Summit Environmental'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 |
| Summit Environmental vs. Origin Materials | Summit Environmental vs. NL Industries | Summit Environmental vs. Highway Holdings Limited | Summit Environmental vs. Hurco Companies |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |