Correlation Between PennyMac Mortgage and JSC Halyk
Can any of the company-specific risk be diversified away by investing in both PennyMac Mortgage and JSC Halyk 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 JSC Halyk 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 JSC Halyk bank, you can compare the effects of market volatilities on PennyMac Mortgage and JSC Halyk 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 JSC Halyk. Check out your portfolio center. Please also check ongoing floating volatility patterns of PennyMac Mortgage and JSC Halyk.
Diversification Opportunities for PennyMac Mortgage and JSC Halyk
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PennyMac and JSC is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding PennyMac Mortgage Investment and JSC Halyk bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JSC Halyk bank 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 JSC Halyk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JSC Halyk bank has no effect on the direction of PennyMac Mortgage i.e., PennyMac Mortgage and JSC Halyk go up and down completely randomly.
Pair Corralation between PennyMac Mortgage and JSC Halyk
Assuming the 90 days horizon PennyMac Mortgage Investment is expected to generate 0.23 times more return on investment than JSC Halyk. However, PennyMac Mortgage Investment is 4.34 times less risky than JSC Halyk. It trades about 0.19 of its potential returns per unit of risk. JSC Halyk bank is currently generating about 0.02 per unit of risk. If you would invest 1,230 in PennyMac Mortgage Investment on September 2, 2024 and sell it today you would earn a total of 50.00 from holding PennyMac Mortgage Investment or generate 4.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PennyMac Mortgage Investment vs. JSC Halyk bank
Performance |
| Timeline |
| PennyMac Mortgage |
| JSC Halyk bank |
PennyMac Mortgage and JSC Halyk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PennyMac Mortgage and JSC Halyk
The main advantage of trading using opposite PennyMac Mortgage and JSC Halyk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PennyMac Mortgage position performs unexpectedly, JSC Halyk 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 JSC Halyk will offset losses from the drop in JSC Halyk's long position.| PennyMac Mortgage vs. DXC Technology Co | PennyMac Mortgage vs. X FAB Silicon Foundries | PennyMac Mortgage vs. Hyrican Informationssysteme Aktiengesellschaft | PennyMac Mortgage vs. SCOTT TECHNOLOGY |
| JSC Halyk vs. IDP EDUCATION LTD | JSC Halyk vs. TROPHY GAMES DEV | JSC Halyk vs. CHINA EDUCATION GROUP | JSC Halyk vs. Adtalem Global Education |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| 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 | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |