Correlation Between 582839AG1 and PennantPark Floating
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By analyzing existing cross correlation between MEAD JOHNSON NUTRITION and PennantPark Floating Rate, you can compare the effects of market volatilities on 582839AG1 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 582839AG1 with a short position of PennantPark Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of 582839AG1 and PennantPark Floating.
Diversification Opportunities for 582839AG1 and PennantPark Floating
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 582839AG1 and PennantPark is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding MEAD JOHNSON NUTRITION 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 582839AG1 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 MEAD JOHNSON NUTRITION 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 582839AG1 i.e., 582839AG1 and PennantPark Floating go up and down completely randomly.
Pair Corralation between 582839AG1 and PennantPark Floating
Assuming the 90 days trading horizon MEAD JOHNSON NUTRITION is expected to generate 1.72 times more return on investment than PennantPark Floating. However, 582839AG1 is 1.72 times more volatile than PennantPark Floating Rate. It trades about 0.07 of its potential returns per unit of risk. PennantPark Floating Rate is currently generating about 0.03 per unit of risk. If you would invest 8,721 in MEAD JOHNSON NUTRITION on September 2, 2024 and sell it today you would earn a total of 547.00 from holding MEAD JOHNSON NUTRITION or generate 6.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 47.62% |
| Values | Daily Returns |
MEAD JOHNSON NUTRITION vs. PennantPark Floating Rate
Performance |
| Timeline |
| MEAD JOHNSON NUTRITION |
| PennantPark Floating Rate |
582839AG1 and PennantPark Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 582839AG1 and PennantPark Floating
The main advantage of trading using opposite 582839AG1 and PennantPark Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 582839AG1 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.| 582839AG1 vs. AEP TEX INC | 582839AG1 vs. US BANK NATIONAL | 582839AG1 vs. Bank of America | 582839AG1 vs. GE Aerospace |
| 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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