Correlation Between Trugolf and PennantPark Investment

Can any of the company-specific risk be diversified away by investing in both Trugolf 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 Trugolf and PennantPark Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Trugolf and PennantPark Investment, you can compare the effects of market volatilities on Trugolf 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 Trugolf with a short position of PennantPark Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trugolf and PennantPark Investment.

Diversification Opportunities for Trugolf and PennantPark Investment

-0.79

Correlation Coefficient

Trugolf  PennantPark Investment

Pay attention - limited upside

The 3 months correlation between Trugolf and PennantPark is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Trugolf and PennantPark Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PennantPark Investment and Trugolf 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 Trugolf 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 Trugolf i.e., Trugolf and PennantPark Investment go up and down completely randomly.

Pair Corralation between Trugolf and PennantPark Investment

Given the investment horizon of 90 days Trugolf is expected to under-perform the PennantPark Investment. In addition to that, Trugolf is 7.23 times more volatile than PennantPark Investment. It trades about -0.12 of its total potential returns per unit of risk. PennantPark Investment is currently generating about 0.19 per unit of volatility. If you would invest  621.00  in PennantPark Investment on May 6, 2025 and sell it today you would earn a total of  96.00  from holding PennantPark Investment or generate 15.46% return on investment over 90 days.

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

Trugolf  vs.  PennantPark Investment

Trugolf

Risk-Adjusted Performance

Very Weak

Over the last 90 days Trugolf has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

PennantPark Investment

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in PennantPark Investment are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, PennantPark Investment unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Trugolf and PennantPark Investment

The main advantage of trading using opposite Trugolf and PennantPark Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trugolf 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.

The idea behind Trugolf and PennantPark Investment 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.