Correlation Between Bet At and PennyMac Mortgage
Can any of the company-specific risk be diversified away by investing in both Bet At 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 Bet At and PennyMac Mortgage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between bet at home AG and PennyMac Mortgage Investment, you can compare the effects of market volatilities on Bet At 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 Bet At with a short position of PennyMac Mortgage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bet At and PennyMac Mortgage.
Diversification Opportunities for Bet At and PennyMac Mortgage
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bet and PennyMac is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding bet at home AG and PennyMac Mortgage Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PennyMac Mortgage and Bet At 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 bet at home AG 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 Bet At i.e., Bet At and PennyMac Mortgage go up and down completely randomly.
Pair Corralation between Bet At and PennyMac Mortgage
Assuming the 90 days trading horizon bet at home AG is expected to under-perform the PennyMac Mortgage. In addition to that, Bet At is 1.84 times more volatile than PennyMac Mortgage Investment. It trades about -0.03 of its total potential returns per unit of risk. PennyMac Mortgage Investment is currently generating about 0.03 per unit of volatility. If you would invest 1,049 in PennyMac Mortgage Investment on September 3, 2024 and sell it today you would earn a total of 231.00 from holding PennyMac Mortgage Investment or generate 22.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
bet at home AG vs. PennyMac Mortgage Investment
Performance |
| Timeline |
| bet at home |
| PennyMac Mortgage |
Bet At and PennyMac Mortgage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bet At and PennyMac Mortgage
The main advantage of trading using opposite Bet At and PennyMac Mortgage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bet At 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.| Bet At vs. UNIVMUSIC GRPADR050 | Bet At vs. MCEWEN MINING INC | Bet At vs. Performance Food Group | Bet At vs. HF FOODS GRP |
| PennyMac Mortgage vs. Superior Plus Corp | PennyMac Mortgage vs. NMI Holdings | PennyMac Mortgage vs. Origin Agritech | PennyMac Mortgage vs. SIVERS SEMICONDUCTORS AB |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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