Correlation Between 037389BE2 and PennantPark Floating
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By analyzing existing cross correlation between AON P and PennantPark Floating Rate, you can compare the effects of market volatilities on 037389BE2 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 037389BE2 with a short position of PennantPark Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of 037389BE2 and PennantPark Floating.
Diversification Opportunities for 037389BE2 and PennantPark Floating
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between 037389BE2 and PennantPark is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding AON P 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 037389BE2 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 AON P 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 037389BE2 i.e., 037389BE2 and PennantPark Floating go up and down completely randomly.
Pair Corralation between 037389BE2 and PennantPark Floating
Assuming the 90 days trading horizon AON P is expected to generate 0.37 times more return on investment than PennantPark Floating. However, AON P is 2.67 times less risky than PennantPark Floating. It trades about 0.07 of its potential returns per unit of risk. PennantPark Floating Rate is currently generating about 0.02 per unit of risk. If you would invest 8,971 in AON P on November 27, 2024 and sell it today you would earn a total of 55.00 from holding AON P or generate 0.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AON P vs. PennantPark Floating Rate
Performance |
| Timeline |
| 037389BE2 |
| PennantPark Floating Rate |
037389BE2 and PennantPark Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 037389BE2 and PennantPark Floating
The main advantage of trading using opposite 037389BE2 and PennantPark Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 037389BE2 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.| 037389BE2 vs. Iridium Communications | 037389BE2 vs. KVH Industries | 037389BE2 vs. BW Offshore Limited | 037389BE2 vs. Enzyme Environmental Solutions |
| PennantPark Floating vs. Gladstone Investment | PennantPark Floating vs. Horizon Technology Finance | PennantPark Floating vs. Stellus Capital Investment | PennantPark Floating vs. Prospect 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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