Correlation Between 404280CF4 and PennantPark Floating
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By analyzing existing cross correlation between HSBC HOLDINGS PLC and PennantPark Floating Rate, you can compare the effects of market volatilities on 404280CF4 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 404280CF4 with a short position of PennantPark Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of 404280CF4 and PennantPark Floating.
Diversification Opportunities for 404280CF4 and PennantPark Floating
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between 404280CF4 and PennantPark is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding HSBC HOLDINGS PLC 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 404280CF4 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 HSBC HOLDINGS PLC 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 404280CF4 i.e., 404280CF4 and PennantPark Floating go up and down completely randomly.
Pair Corralation between 404280CF4 and PennantPark Floating
Assuming the 90 days trading horizon HSBC HOLDINGS PLC is expected to under-perform the PennantPark Floating. But the bond apears to be less risky and, when comparing its historical volatility, HSBC HOLDINGS PLC is 1.9 times less risky than PennantPark Floating. The bond trades about -0.16 of its potential returns per unit of risk. The PennantPark Floating Rate is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,105 in PennantPark Floating Rate on August 31, 2024 and sell it today you would earn a total of 2.00 from holding PennantPark Floating Rate or generate 0.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HSBC HOLDINGS PLC vs. PennantPark Floating Rate
Performance |
| Timeline |
| HSBC HOLDINGS PLC |
| PennantPark Floating Rate |
404280CF4 and PennantPark Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 404280CF4 and PennantPark Floating
The main advantage of trading using opposite 404280CF4 and PennantPark Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 404280CF4 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.| 404280CF4 vs. Kite Realty Group | 404280CF4 vs. FTAI Aviation Ltd | 404280CF4 vs. United Rentals | 404280CF4 vs. Coupang LLC |
| PennantPark Floating vs. Horizon Technology Finance | PennantPark Floating vs. Ares Capital | PennantPark Floating vs. Hercules Capital | PennantPark Floating vs. Main Street 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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