PennyMac Mortgage Correlations

PMTU Stock   25.44  0.01  0.04%   
The current 90-days correlation between PennyMac Mortgage and Bankwell Financial Group is 0.24 (i.e., Modest diversification). The correlation of PennyMac Mortgage is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak. If the correlation is 0, the equities are not correlated; they are entirely random.

PennyMac Mortgage Correlation With Market

Weak diversification

The correlation between PennyMac Mortgage Investment and DJI is 0.34 (i.e., Weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding PennyMac Mortgage Investment and DJI in the same portfolio, assuming nothing else is changed.
  
Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in PennyMac Mortgage Investment. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in estimate.

Moving together with PennyMac Stock

  0.62TW Tradeweb MarketsPairCorr
  0.66VACH Voyager Acquisition CorpPairCorr
  0.66VCIC Vine Hill CapitalPairCorr
  0.62VNO-PL Vornado Realty TrustPairCorr

Moving against PennyMac Stock

  0.64RC Ready Capital CorpPairCorr
  0.64WT WisdomTreePairCorr
  0.55MC MoelisPairCorr
  0.41PX P10 IncPairCorr
  0.4BX Blackstone GroupPairCorr
  0.39DHIL Diamond Hill InvestmentPairCorr
  0.32CG Carlyle Group Normal TradingPairCorr
  0.31DIST Distoken AcquisitionPairCorr
  0.53VRTS Virtus InvestmentPairCorr
  0.52PSEC-PA Prospect CapitalPairCorr
  0.45VALU Value Line Normal TradingPairCorr
  0.38VCTR Victory Capital HoldingsPairCorr

Related Correlations Analysis

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.
High positive correlations   
CMWAYDFS
NCMISEIC
NCMICMWAY
SEICDFS
NCMIDFS
NCMIBWFG
  
High negative correlations   
ALDFSEIC
NCMIALDF
ALDFDFS
ALDFCMWAY
NRRWFSEIC

Risk-Adjusted Indicators

There is a big difference between PennyMac Stock performing well and PennyMac Mortgage Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze PennyMac Mortgage's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.