Correlation Between PennyMac Mortgage and ATRYS HEALTH
Can any of the company-specific risk be diversified away by investing in both PennyMac Mortgage and ATRYS HEALTH 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 ATRYS HEALTH 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 ATRYS HEALTH SA, you can compare the effects of market volatilities on PennyMac Mortgage and ATRYS HEALTH 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 ATRYS HEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of PennyMac Mortgage and ATRYS HEALTH.
Diversification Opportunities for PennyMac Mortgage and ATRYS HEALTH
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between PennyMac and ATRYS is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding PennyMac Mortgage Investment and ATRYS HEALTH SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATRYS HEALTH SA 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 ATRYS HEALTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATRYS HEALTH SA has no effect on the direction of PennyMac Mortgage i.e., PennyMac Mortgage and ATRYS HEALTH go up and down completely randomly.
Pair Corralation between PennyMac Mortgage and ATRYS HEALTH
Assuming the 90 days horizon PennyMac Mortgage is expected to generate 1.11 times less return on investment than ATRYS HEALTH. But when comparing it to its historical volatility, PennyMac Mortgage Investment is 2.79 times less risky than ATRYS HEALTH. It trades about 0.2 of its potential returns per unit of risk. ATRYS HEALTH SA is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 305.00 in ATRYS HEALTH SA on September 19, 2024 and sell it today you would earn a total of 12.00 from holding ATRYS HEALTH SA or generate 3.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PennyMac Mortgage Investment vs. ATRYS HEALTH SA
Performance |
| Timeline |
| PennyMac Mortgage |
| ATRYS HEALTH SA |
PennyMac Mortgage and ATRYS HEALTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PennyMac Mortgage and ATRYS HEALTH
The main advantage of trading using opposite PennyMac Mortgage and ATRYS HEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PennyMac Mortgage position performs unexpectedly, ATRYS HEALTH 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 ATRYS HEALTH will offset losses from the drop in ATRYS HEALTH's long position.| PennyMac Mortgage vs. Superior Plus Corp | PennyMac Mortgage vs. SIVERS SEMICONDUCTORS AB | PennyMac Mortgage vs. CHINA HUARONG ENERHD 50 | PennyMac Mortgage vs. NORDIC HALIBUT AS |
| ATRYS HEALTH vs. Moderna | ATRYS HEALTH vs. Superior Plus Corp | ATRYS HEALTH vs. SIVERS SEMICONDUCTORS AB | ATRYS HEALTH vs. NorAm Drilling AS |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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