Correlation Between PennyMac Finl and Meta Platforms
Can any of the company-specific risk be diversified away by investing in both PennyMac Finl and Meta Platforms 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 Finl and Meta Platforms into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PennyMac Finl Svcs and Meta Platforms, you can compare the effects of market volatilities on PennyMac Finl and Meta Platforms 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 Finl with a short position of Meta Platforms. Check out your portfolio center. Please also check ongoing floating volatility patterns of PennyMac Finl and Meta Platforms.
Diversification Opportunities for PennyMac Finl and Meta Platforms
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PennyMac and Meta is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PennyMac Finl Svcs and Meta Platforms in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meta Platforms and PennyMac Finl 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 Finl Svcs are associated (or correlated) with Meta Platforms. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Meta Platforms has no effect on the direction of PennyMac Finl i.e., PennyMac Finl and Meta Platforms go up and down completely randomly.
Pair Corralation between PennyMac Finl and Meta Platforms
If you would invest 16,949 in Meta Platforms on January 27, 2024 and sell it today you would earn a total of 0.00 from holding Meta Platforms or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 4.55% |
Values | Daily Returns |
PennyMac Finl Svcs vs. Meta Platforms
Performance |
Timeline |
PennyMac Finl Svcs |
Meta Platforms |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
PennyMac Finl and Meta Platforms Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with PennyMac Finl and Meta Platforms
The main advantage of trading using opposite PennyMac Finl and Meta Platforms positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PennyMac Finl position performs unexpectedly, Meta Platforms 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 Meta Platforms will offset losses from the drop in Meta Platforms' long position.PennyMac Finl vs. Ocwen Financial | PennyMac Finl vs. Encore Capital Group | PennyMac Finl vs. Greystone Housing Impact | PennyMac Finl vs. Guild HoldingsCo |
Meta Platforms vs. Meta Platforms | Meta Platforms vs. Alphabet Inc Class A | Meta Platforms vs. Twilio Inc | Meta Platforms vs. Snap Inc |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
Equity Valuation Check real value of public entities based on technical and fundamental data | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |