Correlation Between MSCome Fund, and PennantPark Investment
Can any of the company-specific risk be diversified away by investing in both MSCome Fund, 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 MSCome Fund, and PennantPark Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MSCome Fund, and PennantPark Investment, you can compare the effects of market volatilities on MSCome Fund, 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 MSCome Fund, with a short position of PennantPark Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of MSCome Fund, and PennantPark Investment.
Diversification Opportunities for MSCome Fund, and PennantPark Investment
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between MSCome and PennantPark is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding MSCome Fund, and PennantPark Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PennantPark Investment and MSCome Fund, 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 MSCome Fund, 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 MSCome Fund, i.e., MSCome Fund, and PennantPark Investment go up and down completely randomly.
Pair Corralation between MSCome Fund, and PennantPark Investment
Given the investment horizon of 90 days MSCome Fund, is expected to generate 1.67 times more return on investment than PennantPark Investment. However, MSCome Fund, is 1.67 times more volatile than PennantPark Investment. It trades about 0.01 of its potential returns per unit of risk. PennantPark Investment is currently generating about -0.11 per unit of risk. If you would invest 1,378 in MSCome Fund, on August 20, 2025 and sell it today you would lose (2.00) from holding MSCome Fund, or give up 0.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MSCome Fund, vs. PennantPark Investment
Performance |
| Timeline |
| MSCome Fund, |
| PennantPark Investment |
MSCome Fund, and PennantPark Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MSCome Fund, and PennantPark Investment
The main advantage of trading using opposite MSCome Fund, and PennantPark Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MSCome Fund, 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.| MSCome Fund, vs. Gladstone Investment | MSCome Fund, vs. Fidus Investment Corp | MSCome Fund, vs. Crescent Capital BDC | MSCome Fund, vs. General American Investors |
| PennantPark Investment vs. Gladstone Capital | PennantPark Investment vs. Barings Corporate Investors | PennantPark Investment vs. Gladstone Investment | PennantPark Investment vs. Stellus Capital 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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