diversifiable risk of combining PennantPark Floating and Adaptive Medias 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 Adaptive Medias, you can compare the effects of market volatilities on PennantPark Floating and Adaptive Medias 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 Adaptive Medias. Check out your portfolio center. Please also check ongoing floating volatility patterns of PennantPark Floating and Adaptive Medias.
Diversification Opportunities for PennantPark Floating and Adaptive Medias
Pair Corralation between PennantPark Floating and Adaptive Medias
If you would invest 1,115 in PennantPark Floating Rate on December 3, 2023 and sell it today you would earn a total of 27.00 from holding PennantPark Floating Rate or generate 2.42% return on investment over 90 days.
PennantPark Floating Rate vs. Adaptive Medias
PennantPark Floating and Adaptive Medias Volatility Contrast
Pair Trading with PennantPark Floating and Adaptive MediasThe main advantage of trading using opposite PennantPark Floating and Adaptive Medias positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PennantPark Floating position performs unexpectedly, Adaptive Medias 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 Adaptive Medias will offset losses from the drop in Adaptive Medias' long position. The idea behind PennantPark Floating Rate and Adaptive Medias 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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