Correlation Between PennantPark Investment and NH Foods
Can any of the company-specific risk be diversified away by investing in both PennantPark Investment and NH Foods 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 Investment and NH Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PennantPark Investment and NH Foods Ltd, you can compare the effects of market volatilities on PennantPark Investment and NH Foods 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 Investment with a short position of NH Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of PennantPark Investment and NH Foods.
Diversification Opportunities for PennantPark Investment and NH Foods
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PennantPark and NIPMY is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PennantPark Investment and NH Foods Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NH Foods and PennantPark Investment 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 Investment are associated (or correlated) with NH Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NH Foods has no effect on the direction of PennantPark Investment i.e., PennantPark Investment and NH Foods go up and down completely randomly.
Pair Corralation between PennantPark Investment and NH Foods
If you would invest 669.00 in PennantPark Investment on September 6, 2024 and sell it today you would earn a total of 9.00 from holding PennantPark Investment or generate 1.35% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 98.44% |
Values | Daily Returns |
PennantPark Investment vs. NH Foods Ltd
Performance |
Timeline |
PennantPark Investment |
NH Foods |
PennantPark Investment and NH Foods Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with PennantPark Investment and NH Foods
The main advantage of trading using opposite PennantPark Investment and NH Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PennantPark Investment position performs unexpectedly, NH Foods 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 NH Foods will offset losses from the drop in NH Foods' long position.PennantPark Investment vs. Sixth Street Specialty | PennantPark Investment vs. New Mountain Finance | PennantPark Investment vs. Carlyle Secured Lending | PennantPark Investment vs. BlackRock TCP Capital |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |