Correlation Between PennantPark Floating and Contextlogic Inc

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

Diversification Opportunities for PennantPark Floating and Contextlogic Inc

-0.6

Correlation Coefficient

PennantPark Floating  Contextlogic Inc

Excellent diversification

The 3 months correlation between PennantPark and Contextlogic Inc is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding PennantPark Floating Rate and Contextlogic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Contextlogic Inc 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 Contextlogic Inc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Contextlogic Inc has no effect on the direction of PennantPark Floating i.e., PennantPark Floating and Contextlogic Inc go up and down completely randomly.

Pair Corralation between PennantPark Floating and Contextlogic Inc

Given the investment horizon of 90 days PennantPark Floating Rate is expected to under-perform the Contextlogic Inc. But the stock apears to be less risky and, when comparing its historical volatility, PennantPark Floating Rate is 1.9 times less risky than Contextlogic Inc. The stock trades about -0.29 of its potential returns per unit of risk. The Contextlogic is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  727.00  in Contextlogic on July 10, 2025 and sell it today you would earn a total of  33.00  from holding Contextlogic or generate 4.54% return on investment over 90 days.

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

PennantPark Floating Rate  vs.  Contextlogic

PennantPark Floating Rate

Risk-Adjusted Performance

Weakest

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 unfluctuating performance in the last few months, the Stock's essential indicators remain comparatively stable which may send shares a bit higher in November 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Contextlogic Inc

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Contextlogic are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical and fundamental indicators, Contextlogic Inc is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with PennantPark Floating and Contextlogic Inc

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

The idea behind PennantPark Floating Rate and Contextlogic 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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.