Correlation Between ZEEKR Intelligent and PennantPark Floating

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

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

Diversification Opportunities for ZEEKR Intelligent and PennantPark Floating

0.16

Correlation Coefficient

ZEEKR Intelligent  PennantPark Floating

Average diversification

The 3 months correlation between ZEEKR and PennantPark is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding ZEEKR Intelligent Technology 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 ZEEKR Intelligent 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 ZEEKR Intelligent Technology 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 ZEEKR Intelligent i.e., ZEEKR Intelligent and PennantPark Floating go up and down completely randomly.

Pair Corralation between ZEEKR Intelligent and PennantPark Floating

Allowing for the 90-day total investment horizon ZEEKR Intelligent Technology is expected to under-perform the PennantPark Floating. In addition to that, ZEEKR Intelligent is 12.89 times more volatile than PennantPark Floating Rate. It trades about -0.01 of its total potential returns per unit of risk. PennantPark Floating Rate is currently generating about 0.11 per unit of volatility. If you would invest  1,100  in PennantPark Floating Rate on September 2, 2024 and sell it today you would earn a total of  16.00  from holding PennantPark Floating Rate or generate 1.45% return on investment over 90 days.

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

ZEEKR Intelligent Technology  vs.  PennantPark Floating Rate

ZEEKR Intelligent

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in ZEEKR Intelligent Technology are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite quite uncertain forward-looking signals, ZEEKR Intelligent disclosed solid returns over the last few months and may actually be approaching a breakup point.

PennantPark Floating Rate

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in PennantPark Floating Rate are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. 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.

Pair Trading with ZEEKR Intelligent and PennantPark Floating

The main advantage of trading using opposite ZEEKR Intelligent and PennantPark Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZEEKR Intelligent 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.

The idea behind ZEEKR Intelligent Technology and PennantPark Floating Rate 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.