Correlation Between Siamgas and PennyMac Mortgage
Can any of the company-specific risk be diversified away by investing in both Siamgas and PennyMac Mortgage 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 Siamgas and PennyMac Mortgage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siamgas And Petrochemicals and PennyMac Mortgage Investment, you can compare the effects of market volatilities on Siamgas and PennyMac Mortgage 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 Siamgas with a short position of PennyMac Mortgage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siamgas and PennyMac Mortgage.
Diversification Opportunities for Siamgas and PennyMac Mortgage
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Siamgas and PennyMac is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Siamgas And Petrochemicals and PennyMac Mortgage Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PennyMac Mortgage and Siamgas 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 Siamgas And Petrochemicals are associated (or correlated) with PennyMac Mortgage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PennyMac Mortgage has no effect on the direction of Siamgas i.e., Siamgas and PennyMac Mortgage go up and down completely randomly.
Pair Corralation between Siamgas and PennyMac Mortgage
Assuming the 90 days trading horizon Siamgas And Petrochemicals is expected to generate 1.89 times more return on investment than PennyMac Mortgage. However, Siamgas is 1.89 times more volatile than PennyMac Mortgage Investment. It trades about 0.08 of its potential returns per unit of risk. PennyMac Mortgage Investment is currently generating about -0.03 per unit of risk. If you would invest 17.00 in Siamgas And Petrochemicals on October 17, 2024 and sell it today you would earn a total of 1.00 from holding Siamgas And Petrochemicals or generate 5.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siamgas And Petrochemicals vs. PennyMac Mortgage Investment
Performance |
| Timeline |
| Siamgas And Petroche |
| PennyMac Mortgage |
Siamgas and PennyMac Mortgage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siamgas and PennyMac Mortgage
The main advantage of trading using opposite Siamgas and PennyMac Mortgage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siamgas position performs unexpectedly, PennyMac Mortgage 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 PennyMac Mortgage will offset losses from the drop in PennyMac Mortgage's long position.| Siamgas vs. ANTA SPORTS PRODUCT | Siamgas vs. USWE SPORTS AB | Siamgas vs. PLAYMATES TOYS | Siamgas vs. Mitsubishi Materials |
| PennyMac Mortgage vs. X FAB Silicon Foundries | PennyMac Mortgage vs. X FAB Silicon Foundries | PennyMac Mortgage vs. Siamgas And Petrochemicals | PennyMac Mortgage vs. AIR PRODCHEMICALS |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Global Correlations Find global opportunities by holding instruments from different markets |