Correlation Between ATRYS HEALTH and PennyMac Mortgage
Can any of the company-specific risk be diversified away by investing in both ATRYS HEALTH and PennyMac Mortgage 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 ATRYS HEALTH and PennyMac Mortgage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATRYS HEALTH SA and PennyMac Mortgage Investment, you can compare the effects of market volatilities on ATRYS HEALTH and PennyMac Mortgage 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 ATRYS HEALTH with a short position of PennyMac Mortgage. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATRYS HEALTH and PennyMac Mortgage.
Diversification Opportunities for ATRYS HEALTH and PennyMac Mortgage
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between ATRYS and PennyMac is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding ATRYS HEALTH SA and PennyMac Mortgage Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PennyMac Mortgage and ATRYS HEALTH 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 ATRYS HEALTH SA are associated (or correlated) with PennyMac Mortgage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PennyMac Mortgage has no effect on the direction of ATRYS HEALTH i.e., ATRYS HEALTH and PennyMac Mortgage go up and down completely randomly.
Pair Corralation between ATRYS HEALTH and PennyMac Mortgage
Assuming the 90 days horizon ATRYS HEALTH SA is expected to generate 2.79 times more return on investment than PennyMac Mortgage. However, ATRYS HEALTH is 2.79 times more volatile than PennyMac Mortgage Investment. It trades about 0.08 of its potential returns per unit of risk. PennyMac Mortgage Investment is currently generating about 0.2 per unit of risk. 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 |
ATRYS HEALTH SA vs. PennyMac Mortgage Investment
Performance |
| Timeline |
| ATRYS HEALTH SA |
| PennyMac Mortgage |
ATRYS HEALTH and PennyMac Mortgage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATRYS HEALTH and PennyMac Mortgage
The main advantage of trading using opposite ATRYS HEALTH and PennyMac Mortgage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATRYS HEALTH position performs unexpectedly, PennyMac Mortgage 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 PennyMac Mortgage will offset losses from the drop in PennyMac Mortgage's long position.| ATRYS HEALTH vs. Moderna | ATRYS HEALTH vs. Superior Plus Corp | ATRYS HEALTH vs. SIVERS SEMICONDUCTORS AB | ATRYS HEALTH vs. NorAm Drilling AS |
| 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 |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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