Correlation Between Marchex and PennantPark Floating
Can any of the company-specific risk be diversified away by investing in both Marchex 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 Marchex and PennantPark Floating into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marchex and PennantPark Floating Rate, you can compare the effects of market volatilities on Marchex 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 Marchex with a short position of PennantPark Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marchex and PennantPark Floating.
Diversification Opportunities for Marchex and PennantPark Floating
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Marchex and PennantPark is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Marchex 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 Marchex 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 Marchex 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 Marchex i.e., Marchex and PennantPark Floating go up and down completely randomly.
Pair Corralation between Marchex and PennantPark Floating
Given the investment horizon of 90 days Marchex is expected to generate 2.66 times more return on investment than PennantPark Floating. However, Marchex is 2.66 times more volatile than PennantPark Floating Rate. It trades about 0.03 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 172.00 in Marchex on September 23, 2024 and sell it today you would earn a total of 27.00 from holding Marchex or generate 15.7% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Marchex vs. PennantPark Floating Rate
Performance |
Timeline |
Marchex |
PennantPark Floating Rate |
Marchex and PennantPark Floating Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Marchex and PennantPark Floating
The main advantage of trading using opposite Marchex and PennantPark Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marchex 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.Marchex vs. CMG Holdings Group | Marchex vs. Beyond Commerce | Marchex vs. Mastermind | Marchex vs. Aquagold International |
PennantPark Floating vs. Aquagold International | PennantPark Floating vs. Morningstar Unconstrained Allocation | PennantPark Floating vs. Thrivent High Yield | PennantPark Floating vs. Via Renewables |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
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 |