Correlation Between Penns Woods and MyMD Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Penns Woods and MyMD Pharmaceuticals 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 Penns Woods and MyMD Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Penns Woods Bancorp and MyMD Pharmaceuticals, you can compare the effects of market volatilities on Penns Woods and MyMD Pharmaceuticals 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 Penns Woods with a short position of MyMD Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Penns Woods and MyMD Pharmaceuticals.
Diversification Opportunities for Penns Woods and MyMD Pharmaceuticals
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Penns and MyMD is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Penns Woods Bancorp and MyMD Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MyMD Pharmaceuticals and Penns Woods 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 Penns Woods Bancorp are associated (or correlated) with MyMD Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MyMD Pharmaceuticals has no effect on the direction of Penns Woods i.e., Penns Woods and MyMD Pharmaceuticals go up and down completely randomly.
Pair Corralation between Penns Woods and MyMD Pharmaceuticals
If you would invest 2,368 in Penns Woods Bancorp on September 26, 2024 and sell it today you would earn a total of 686.00 from holding Penns Woods Bancorp or generate 28.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 1.59% |
| Values | Daily Returns |
Penns Woods Bancorp vs. MyMD Pharmaceuticals
Performance |
| Timeline |
| Penns Woods Bancorp |
| MyMD Pharmaceuticals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Penns Woods and MyMD Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Penns Woods and MyMD Pharmaceuticals
The main advantage of trading using opposite Penns Woods and MyMD Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Penns Woods position performs unexpectedly, MyMD Pharmaceuticals 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 MyMD Pharmaceuticals will offset losses from the drop in MyMD Pharmaceuticals' long position.| Penns Woods vs. 1st Source | Penns Woods vs. Great Southern Bancorp | Penns Woods vs. Waterstone Financial | Penns Woods vs. First Community |
| MyMD Pharmaceuticals vs. Recursion Pharmaceuticals | MyMD Pharmaceuticals vs. Atea Pharmaceuticals | MyMD Pharmaceuticals vs. Unity Biotechnology | MyMD Pharmaceuticals vs. Replimune Group |
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 Managers module to screen money managers from public funds and ETFs managed around the world.
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