Correlation Between EXELON and PennantPark Investment
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By analyzing existing cross correlation between EXELON GENERATION LLC and PennantPark Investment, you can compare the effects of market volatilities on EXELON and PennantPark Investment 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 EXELON with a short position of PennantPark Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of EXELON and PennantPark Investment.
Diversification Opportunities for EXELON and PennantPark Investment
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between EXELON and PennantPark is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding EXELON GENERATION LLC and PennantPark Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PennantPark Investment and EXELON 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 EXELON GENERATION LLC are associated (or correlated) with PennantPark Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PennantPark Investment has no effect on the direction of EXELON i.e., EXELON and PennantPark Investment go up and down completely randomly.
Pair Corralation between EXELON and PennantPark Investment
Assuming the 90 days trading horizon EXELON GENERATION LLC is expected to under-perform the PennantPark Investment. But the bond apears to be less risky and, when comparing its historical volatility, EXELON GENERATION LLC is 1.23 times less risky than PennantPark Investment. The bond trades about -0.01 of its potential returns per unit of risk. The PennantPark Investment is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 447.00 in PennantPark Investment on August 27, 2024 and sell it today you would earn a total of 251.00 from holding PennantPark Investment or generate 56.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 93.75% |
| Values | Daily Returns |
EXELON GENERATION LLC vs. PennantPark Investment
Performance |
| Timeline |
| EXELON GENERATION LLC |
| PennantPark Investment |
EXELON and PennantPark Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EXELON and PennantPark Investment
The main advantage of trading using opposite EXELON and PennantPark Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EXELON position performs unexpectedly, PennantPark Investment 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 Investment will offset losses from the drop in PennantPark Investment's long position.| EXELON vs. PennantPark Investment | EXELON vs. Presidio Property Trust | EXELON vs. Huadi International Group | EXELON vs. Bank of America |
| PennantPark Investment vs. Sixth Street Specialty | PennantPark Investment vs. New Mountain Finance | PennantPark Investment vs. Carlyle Secured Lending | PennantPark Investment vs. BlackRock TCP 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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