Correlation Between Vuzix Corp and PennyMac Mortgage
Can any of the company-specific risk be diversified away by investing in both Vuzix Corp 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 Vuzix Corp and PennyMac Mortgage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vuzix Corp Cmn and PennyMac Mortgage Investment, you can compare the effects of market volatilities on Vuzix Corp 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 Vuzix Corp with a short position of PennyMac Mortgage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vuzix Corp and PennyMac Mortgage.
Diversification Opportunities for Vuzix Corp and PennyMac Mortgage
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Vuzix and PennyMac is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Vuzix Corp Cmn and PennyMac Mortgage Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PennyMac Mortgage and Vuzix Corp 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 Vuzix Corp Cmn 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 Vuzix Corp i.e., Vuzix Corp and PennyMac Mortgage go up and down completely randomly.
Pair Corralation between Vuzix Corp and PennyMac Mortgage
Given the investment horizon of 90 days Vuzix Corp Cmn is expected to generate 13.66 times more return on investment than PennyMac Mortgage. However, Vuzix Corp is 13.66 times more volatile than PennyMac Mortgage Investment. It trades about 0.06 of its potential returns per unit of risk. PennyMac Mortgage Investment is currently generating about 0.03 per unit of risk. If you would invest 215.00 in Vuzix Corp Cmn on September 2, 2025 and sell it today you would earn a total of 33.00 from holding Vuzix Corp Cmn or generate 15.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.46% |
| Values | Daily Returns |
Vuzix Corp Cmn vs. PennyMac Mortgage Investment
Performance |
| Timeline |
| Vuzix Corp Cmn |
| PennyMac Mortgage |
Vuzix Corp and PennyMac Mortgage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vuzix Corp and PennyMac Mortgage
The main advantage of trading using opposite Vuzix Corp and PennyMac Mortgage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vuzix Corp 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.| Vuzix Corp vs. CVW CleanTech | Vuzix Corp vs. Air Lease | Vuzix Corp vs. Catalyst Metals Limited | Vuzix Corp vs. Lend Lease Group |
| PennyMac Mortgage vs. LATAM Airlines Group | PennyMac Mortgage vs. Agriculture Natural Solutions | PennyMac Mortgage vs. Singapore Airlines | PennyMac Mortgage vs. China Construction Bank |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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