Correlation Between PennyMac Mortgage and Suntory Beverage
Can any of the company-specific risk be diversified away by investing in both PennyMac Mortgage and Suntory Beverage 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 PennyMac Mortgage and Suntory Beverage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PennyMac Mortgage Investment and Suntory Beverage Food, you can compare the effects of market volatilities on PennyMac Mortgage and Suntory Beverage 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 PennyMac Mortgage with a short position of Suntory Beverage. Check out your portfolio center. Please also check ongoing floating volatility patterns of PennyMac Mortgage and Suntory Beverage.
Diversification Opportunities for PennyMac Mortgage and Suntory Beverage
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PennyMac and Suntory is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding PennyMac Mortgage Investment and Suntory Beverage Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suntory Beverage Food and PennyMac Mortgage 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 PennyMac Mortgage Investment are associated (or correlated) with Suntory Beverage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suntory Beverage Food has no effect on the direction of PennyMac Mortgage i.e., PennyMac Mortgage and Suntory Beverage go up and down completely randomly.
Pair Corralation between PennyMac Mortgage and Suntory Beverage
Assuming the 90 days horizon PennyMac Mortgage Investment is expected to generate 0.91 times more return on investment than Suntory Beverage. However, PennyMac Mortgage Investment is 1.1 times less risky than Suntory Beverage. It trades about 0.06 of its potential returns per unit of risk. Suntory Beverage Food is currently generating about -0.01 per unit of risk. If you would invest 969.00 in PennyMac Mortgage Investment on August 31, 2024 and sell it today you would earn a total of 311.00 from holding PennyMac Mortgage Investment or generate 32.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PennyMac Mortgage Investment vs. Suntory Beverage Food
Performance |
| Timeline |
| PennyMac Mortgage |
| Suntory Beverage Food |
PennyMac Mortgage and Suntory Beverage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PennyMac Mortgage and Suntory Beverage
The main advantage of trading using opposite PennyMac Mortgage and Suntory Beverage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PennyMac Mortgage position performs unexpectedly, Suntory Beverage 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 Suntory Beverage will offset losses from the drop in Suntory Beverage's long position.| PennyMac Mortgage vs. Superior Plus Corp | PennyMac Mortgage vs. NMI Holdings | PennyMac Mortgage vs. Origin Agritech | PennyMac Mortgage vs. SIVERS SEMICONDUCTORS AB |
| Suntory Beverage vs. Heineken Holding NV | Suntory Beverage vs. Superior Plus Corp | Suntory Beverage vs. NMI Holdings | Suntory Beverage vs. Origin Agritech |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Stocks Directory Find actively traded stocks across global markets |