Correlation Between PennantPark Floating and FitLife Brands,

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

Diversification Opportunities for PennantPark Floating and FitLife Brands,

-0.21

Correlation Coefficient

PennantPark Floating  FitLife Brands,

Very good diversification

The 3 months correlation between PennantPark and FitLife is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding PennantPark Floating Rate and FitLife Brands, Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FitLife Brands, Common 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 FitLife Brands,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FitLife Brands, Common has no effect on the direction of PennantPark Floating i.e., PennantPark Floating and FitLife Brands, go up and down completely randomly.

Pair Corralation between PennantPark Floating and FitLife Brands,

Given the investment horizon of 90 days PennantPark Floating Rate is expected to under-perform the FitLife Brands,. But the stock apears to be less risky and, when comparing its historical volatility, PennantPark Floating Rate is 2.68 times less risky than FitLife Brands,. The stock trades about -0.07 of its potential returns per unit of risk. The FitLife Brands, Common is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest  3,322  in FitLife Brands, Common on September 24, 2024 and sell it today you would lose (178.00) from holding FitLife Brands, Common or give up 5.36% of portfolio value over 90 days.

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

PennantPark Floating Rate  vs.  FitLife Brands, Common

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.

FitLife Brands, Common

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days FitLife Brands, Common has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable essential indicators, FitLife Brands, is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with PennantPark Floating and FitLife Brands,

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

The idea behind PennantPark Floating Rate and FitLife Brands, Common 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.

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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..