Correlation Between Vestas Wind and PennyMac Mortgage
Specify exactly 2 symbols:
By analyzing existing cross correlation between Vestas Wind Systems and PennyMac Mortgage Investment, you can compare the effects of market volatilities on Vestas Wind 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 Vestas Wind with a short position of PennyMac Mortgage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vestas Wind and PennyMac Mortgage.
Diversification Opportunities for Vestas Wind and PennyMac Mortgage
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Vestas and PennyMac is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Vestas Wind Systems and PennyMac Mortgage Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PennyMac Mortgage and Vestas Wind 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 Vestas Wind Systems 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 Vestas Wind i.e., Vestas Wind and PennyMac Mortgage go up and down completely randomly.
Pair Corralation between Vestas Wind and PennyMac Mortgage
Assuming the 90 days trading horizon Vestas Wind is expected to generate 3.97 times less return on investment than PennyMac Mortgage. In addition to that, Vestas Wind is 3.08 times more volatile than PennyMac Mortgage Investment. It trades about 0.0 of its total potential returns per unit of risk. PennyMac Mortgage Investment is currently generating about 0.04 per unit of volatility. If you would invest 1,260 in PennyMac Mortgage Investment on September 13, 2024 and sell it today you would earn a total of 10.00 from holding PennyMac Mortgage Investment or generate 0.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vestas Wind Systems vs. PennyMac Mortgage Investment
Performance |
| Timeline |
| Vestas Wind Systems |
| PennyMac Mortgage |
Vestas Wind and PennyMac Mortgage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vestas Wind and PennyMac Mortgage
The main advantage of trading using opposite Vestas Wind and PennyMac Mortgage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vestas Wind 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.| Vestas Wind vs. Iridium Communications | Vestas Wind vs. WillScot Mobile Mini | Vestas Wind vs. Consolidated Communications Holdings | Vestas Wind vs. Gamma Communications plc |
| PennyMac Mortgage vs. Selective Insurance Group | PennyMac Mortgage vs. Direct Line Insurance | PennyMac Mortgage vs. ZURICH INSURANCE GROUP | PennyMac Mortgage vs. Hyster Yale Materials Handling |
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.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |