Correlation Between PennantPark Floating and Golden Matrix

Can any of the company-specific risk be diversified away by investing in both PennantPark Floating and Golden Matrix 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 PennantPark Floating and Golden Matrix into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between PennantPark Floating Rate and Golden Matrix Group, you can compare the effects of market volatilities on PennantPark Floating and Golden Matrix 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 PennantPark Floating with a short position of Golden Matrix. Check out your portfolio center. Please also check ongoing floating volatility patterns of PennantPark Floating and Golden Matrix.

Diversification Opportunities for PennantPark Floating and Golden Matrix

-0.24

Correlation Coefficient

PennantPark Floating  Golden Matrix

Very good diversification

The 3 months correlation between PennantPark and Golden is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding PennantPark Floating Rate and Golden Matrix Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Matrix Group and PennantPark Floating 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 PennantPark Floating Rate are associated (or correlated) with Golden Matrix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Matrix Group has no effect on the direction of PennantPark Floating i.e., PennantPark Floating and Golden Matrix go up and down completely randomly.

Pair Corralation between PennantPark Floating and Golden Matrix

Given the investment horizon of 90 days PennantPark Floating Rate is expected to generate 0.19 times more return on investment than Golden Matrix. However, PennantPark Floating Rate is 5.24 times less risky than Golden Matrix. It trades about 0.05 of its potential returns per unit of risk. Golden Matrix Group is currently generating about 0.01 per unit of risk. If you would invest  900.00  in PennantPark Floating Rate on September 17, 2024 and sell it today you would earn a total of  203.00  from holding PennantPark Floating Rate or generate 22.56% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

PennantPark Floating Rate  vs.  Golden Matrix Group

PennantPark Floating Rate

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days PennantPark Floating Rate has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable essential indicators, PennantPark Floating is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Golden Matrix Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Golden Matrix Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong technical and fundamental indicators, Golden Matrix is not utilizing all of its potentials. The newest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with PennantPark Floating and Golden Matrix

The main advantage of trading using opposite PennantPark Floating and Golden Matrix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PennantPark Floating position performs unexpectedly, Golden Matrix 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 Golden Matrix will offset losses from the drop in Golden Matrix's long position.

The idea behind PennantPark Floating Rate and Golden Matrix Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.