Correlation Between PennantPark Investment and Acorn International
Can any of the company-specific risk be diversified away by investing in both PennantPark Investment and Acorn International 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 Acorn International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PennantPark Investment and Acorn International, you can compare the effects of market volatilities on PennantPark Investment and Acorn International 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 Acorn International. Check out your portfolio center. Please also check ongoing floating volatility patterns of PennantPark Investment and Acorn International.
Diversification Opportunities for PennantPark Investment and Acorn International
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PennantPark and Acorn is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PennantPark Investment and Acorn International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acorn International 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 Acorn International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acorn International has no effect on the direction of PennantPark Investment i.e., PennantPark Investment and Acorn International go up and down completely randomly.
Pair Corralation between PennantPark Investment and Acorn International
If you would invest 687.00 in PennantPark Investment on February 5, 2024 and sell it today you would earn a total of 17.00 from holding PennantPark Investment or generate 2.47% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
PennantPark Investment vs. Acorn International
Performance |
Timeline |
PennantPark Investment |
Acorn International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
PennantPark Investment and Acorn International Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with PennantPark Investment and Acorn International
The main advantage of trading using opposite PennantPark Investment and Acorn International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PennantPark Investment position performs unexpectedly, Acorn International 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 Acorn International will offset losses from the drop in Acorn International's 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 |
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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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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