Correlation Between 893574AK9 and PennantPark Floating
Specify exactly 2 symbols:
By analyzing existing cross correlation between TRANSCONTINENTAL GAS PIPE and PennantPark Floating Rate, you can compare the effects of market volatilities on 893574AK9 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 893574AK9 with a short position of PennantPark Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of 893574AK9 and PennantPark Floating.
Diversification Opportunities for 893574AK9 and PennantPark Floating
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between 893574AK9 and PennantPark is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding TRANSCONTINENTAL GAS PIPE 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 893574AK9 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 TRANSCONTINENTAL GAS PIPE 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 893574AK9 i.e., 893574AK9 and PennantPark Floating go up and down completely randomly.
Pair Corralation between 893574AK9 and PennantPark Floating
Assuming the 90 days trading horizon 893574AK9 is expected to generate 10.3 times less return on investment than PennantPark Floating. But when comparing it to its historical volatility, TRANSCONTINENTAL GAS PIPE is 1.65 times less risky than PennantPark Floating. It trades about 0.01 of its potential returns per unit of risk. PennantPark Floating Rate is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,001 in PennantPark Floating Rate on August 26, 2024 and sell it today you would earn a total of 106.00 from holding PennantPark Floating Rate or generate 10.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 79.52% |
| Values | Daily Returns |
TRANSCONTINENTAL GAS PIPE vs. PennantPark Floating Rate
Performance |
| Timeline |
| TRANSCONTINENTAL GAS PIPE |
| PennantPark Floating Rate |
893574AK9 and PennantPark Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 893574AK9 and PennantPark Floating
The main advantage of trading using opposite 893574AK9 and PennantPark Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 893574AK9 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.| 893574AK9 vs. PennantPark Floating Rate | 893574AK9 vs. Amkor Technology | 893574AK9 vs. BioNTech SE | 893574AK9 vs. US Global Investors |
| PennantPark Floating vs. PowerUp Acquisition Corp | PennantPark Floating vs. Aurora Innovation | PennantPark Floating vs. HUMANA INC | PennantPark Floating vs. Aquagold International |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |