Correlation Between PennyMac Mortgage and LEWAG HOLDING
Can any of the company-specific risk be diversified away by investing in both PennyMac Mortgage and LEWAG HOLDING 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 LEWAG HOLDING 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 LEWAG HOLDING AG, you can compare the effects of market volatilities on PennyMac Mortgage and LEWAG HOLDING 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 LEWAG HOLDING. Check out your portfolio center. Please also check ongoing floating volatility patterns of PennyMac Mortgage and LEWAG HOLDING.
Diversification Opportunities for PennyMac Mortgage and LEWAG HOLDING
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PennyMac and LEWAG is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PennyMac Mortgage Investment and LEWAG HOLDING AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LEWAG HOLDING AG 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 LEWAG HOLDING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LEWAG HOLDING AG has no effect on the direction of PennyMac Mortgage i.e., PennyMac Mortgage and LEWAG HOLDING go up and down completely randomly.
Pair Corralation between PennyMac Mortgage and LEWAG HOLDING
If you would invest 1,199 in PennyMac Mortgage Investment on October 20, 2024 and sell it today you would earn a total of 1.00 from holding PennyMac Mortgage Investment or generate 0.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
PennyMac Mortgage Investment vs. LEWAG HOLDING AG
Performance |
| Timeline |
| PennyMac Mortgage |
| LEWAG HOLDING AG |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
PennyMac Mortgage and LEWAG HOLDING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PennyMac Mortgage and LEWAG HOLDING
The main advantage of trading using opposite PennyMac Mortgage and LEWAG HOLDING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PennyMac Mortgage position performs unexpectedly, LEWAG HOLDING 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 LEWAG HOLDING will offset losses from the drop in LEWAG HOLDING's long position.| PennyMac Mortgage vs. SENECA FOODS A | PennyMac Mortgage vs. EBRO FOODS | PennyMac Mortgage vs. Cal Maine Foods | PennyMac Mortgage vs. Globex Mining Enterprises |
| LEWAG HOLDING vs. VELA TECHNOLPLC LS 0001 | LEWAG HOLDING vs. PENN NATL GAMING | LEWAG HOLDING vs. NetSol Technologies | LEWAG HOLDING vs. Media and Games |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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