Correlation Between PennantPark Floating and 19123MAF0

Can any of the company-specific risk be diversified away by investing in both PennantPark Floating and 19123MAF0 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 19123MAF0 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 CCEP 15 15 JAN 27, you can compare the effects of market volatilities on PennantPark Floating and 19123MAF0 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 19123MAF0. Check out your portfolio center. Please also check ongoing floating volatility patterns of PennantPark Floating and 19123MAF0.

Diversification Opportunities for PennantPark Floating and 19123MAF0

-0.75

Correlation Coefficient

PennantPark Floating  19123MAF0

Pay attention - limited upside

The 3 months correlation between PennantPark and 19123MAF0 is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding PennantPark Floating Rate and CCEP 15 15 JAN 27 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CCEP 15 15 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 19123MAF0. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CCEP 15 15 has no effect on the direction of PennantPark Floating i.e., PennantPark Floating and 19123MAF0 go up and down completely randomly.

Pair Corralation between PennantPark Floating and 19123MAF0

Given the investment horizon of 90 days PennantPark Floating Rate is expected to generate 2.1 times more return on investment than 19123MAF0. However, PennantPark Floating is 2.1 times more volatile than CCEP 15 15 JAN 27. It trades about 0.03 of its potential returns per unit of risk. CCEP 15 15 JAN 27 is currently generating about 0.03 per unit of risk. If you would invest  957.00  in PennantPark Floating Rate on October 12, 2024 and sell it today you would earn a total of  134.00  from holding PennantPark Floating Rate or generate 14.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	26.67%
Values	Daily Returns

PennantPark Floating Rate  vs.  CCEP 15 15 JAN 27

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 recent stock price uproar, may contribute to short-horizon losses for the private investors.

CCEP 15 15

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CCEP 15 15 JAN 27 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unsteady performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for CCEP 15 15 JAN 27 investors.

Pair Trading with PennantPark Floating and 19123MAF0

The main advantage of trading using opposite PennantPark Floating and 19123MAF0 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PennantPark Floating position performs unexpectedly, 19123MAF0 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 19123MAF0 will offset losses from the drop in 19123MAF0's long position.

The idea behind PennantPark Floating Rate and CCEP 15 15 JAN 27 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.

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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.