Correlation Between PennyMac Mortgage and SHIN NIPPON
Can any of the company-specific risk be diversified away by investing in both PennyMac Mortgage and SHIN NIPPON 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 SHIN NIPPON 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 SHIN NIPPON MIOMEDI, you can compare the effects of market volatilities on PennyMac Mortgage and SHIN NIPPON 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 SHIN NIPPON. Check out your portfolio center. Please also check ongoing floating volatility patterns of PennyMac Mortgage and SHIN NIPPON.
Diversification Opportunities for PennyMac Mortgage and SHIN NIPPON
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PennyMac and SHIN is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PennyMac Mortgage Investment and SHIN NIPPON MIOMEDI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SHIN NIPPON MIOMEDI 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 SHIN NIPPON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SHIN NIPPON MIOMEDI has no effect on the direction of PennyMac Mortgage i.e., PennyMac Mortgage and SHIN NIPPON go up and down completely randomly.
Pair Corralation between PennyMac Mortgage and SHIN NIPPON
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 | 5.56% |
| Values | Daily Returns |
PennyMac Mortgage Investment vs. SHIN NIPPON MIOMEDI
Performance |
| Timeline |
| PennyMac Mortgage |
| SHIN NIPPON MIOMEDI |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
PennyMac Mortgage and SHIN NIPPON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PennyMac Mortgage and SHIN NIPPON
The main advantage of trading using opposite PennyMac Mortgage and SHIN NIPPON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PennyMac Mortgage position performs unexpectedly, SHIN NIPPON 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 SHIN NIPPON will offset losses from the drop in SHIN NIPPON'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 |
| SHIN NIPPON vs. Carnegie Clean Energy | SHIN NIPPON vs. alstria office REIT AG | SHIN NIPPON vs. CSSC Offshore Marine | SHIN NIPPON vs. China Communications Services |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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