Correlation Between Meiwu Technology and PennantPark Floating
Can any of the company-specific risk be diversified away by investing in both Meiwu Technology and PennantPark Floating at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Meiwu Technology and PennantPark Floating into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Meiwu Technology Co and PennantPark Floating Rate, you can compare the effects of market volatilities on Meiwu Technology 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 Meiwu Technology with a short position of PennantPark Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meiwu Technology and PennantPark Floating.
Diversification Opportunities for Meiwu Technology and PennantPark Floating
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Meiwu and PennantPark is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Meiwu Technology Co 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 Meiwu Technology 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 Meiwu Technology Co 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 Meiwu Technology i.e., Meiwu Technology and PennantPark Floating go up and down completely randomly.
Pair Corralation between Meiwu Technology and PennantPark Floating
Considering the 90-day investment horizon Meiwu Technology Co is expected to under-perform the PennantPark Floating. In addition to that, Meiwu Technology is 7.07 times more volatile than PennantPark Floating Rate. It trades about -0.02 of its total potential returns per unit of risk. PennantPark Floating Rate is currently generating about 0.04 per unit of volatility. If you would invest 915.00 in PennantPark Floating Rate on August 30, 2024 and sell it today you would earn a total of 192.00 from holding PennantPark Floating Rate or generate 20.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Meiwu Technology Co vs. PennantPark Floating Rate
Performance |
| Timeline |
| Meiwu Technology |
| PennantPark Floating Rate |
Meiwu Technology and PennantPark Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meiwu Technology and PennantPark Floating
The main advantage of trading using opposite Meiwu Technology and PennantPark Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meiwu Technology 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.| Meiwu Technology vs. MOGU Inc | Meiwu Technology vs. iPower Inc | Meiwu Technology vs. Jeffs Brands | Meiwu Technology vs. Kidpik Corp |
| PennantPark Floating vs. TPG Inc | PennantPark Floating vs. Carlyle Secured Lending | PennantPark Floating vs. Brookfield Corp |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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