Correlation Between 61747YEF8 and PennantPark Investment

Can any of the company-specific risk be diversified away by investing in both 61747YEF8 and PennantPark Investment 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 61747YEF8 and PennantPark Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between MS 2484 16 SEP 36 and PennantPark Investment, you can compare the effects of market volatilities on 61747YEF8 and PennantPark Investment 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 61747YEF8 with a short position of PennantPark Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of 61747YEF8 and PennantPark Investment.

Diversification Opportunities for 61747YEF8 and PennantPark Investment

0.0

Correlation Coefficient

61747YEF8  PennantPark Investment

Pay attention - limited upside

The 3 months correlation between 61747YEF8 and PennantPark is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MS 2484 16 SEP 36 and PennantPark Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PennantPark Investment and 61747YEF8 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 MS 2484 16 SEP 36 are associated (or correlated) with PennantPark Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PennantPark Investment has no effect on the direction of 61747YEF8 i.e., 61747YEF8 and PennantPark Investment go up and down completely randomly.

Pair Corralation between 61747YEF8 and PennantPark Investment

If you would invest  649.00  in PennantPark Investment on December 2, 2024 and sell it today you would earn a total of  78.00  from holding PennantPark Investment or generate 12.02% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.64%
Values	Daily Returns

MS 2484 16 SEP 36  vs.  PennantPark Investment

MS 2484 16

Risk-Adjusted Performance

Very Weak

Over the last 90 days MS 2484 16 SEP 36 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 61747YEF8 is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

PennantPark Investment

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in PennantPark Investment are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, PennantPark Investment may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with 61747YEF8 and PennantPark Investment

The main advantage of trading using opposite 61747YEF8 and PennantPark Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 61747YEF8 position performs unexpectedly, PennantPark Investment 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 Investment will offset losses from the drop in PennantPark Investment's long position.

The idea behind MS 2484 16 SEP 36 and PennantPark Investment 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.