Correlation Between Apple and Walker Dunlop
Can any of the company-specific risk be diversified away by investing in both Apple and Walker Dunlop 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 Apple and Walker Dunlop into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and Walker Dunlop, you can compare the effects of market volatilities on Apple and Walker Dunlop 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 Apple with a short position of Walker Dunlop. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and Walker Dunlop.
Diversification Opportunities for Apple and Walker Dunlop
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Apple and Walker is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and Walker Dunlop in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Walker Dunlop and Apple 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 Apple Inc are associated (or correlated) with Walker Dunlop. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Walker Dunlop has no effect on the direction of Apple i.e., Apple and Walker Dunlop go up and down completely randomly.
Pair Corralation between Apple and Walker Dunlop
Assuming the 90 days trading horizon Apple Inc is expected to generate 0.63 times more return on investment than Walker Dunlop. However, Apple Inc is 1.58 times less risky than Walker Dunlop. It trades about 0.09 of its potential returns per unit of risk. Walker Dunlop is currently generating about 0.02 per unit of risk. If you would invest 12,844 in Apple Inc on October 14, 2024 and sell it today you would earn a total of 10,311 from holding Apple Inc or generate 80.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apple Inc vs. Walker Dunlop
Performance |
| Timeline |
| Apple Inc |
| Walker Dunlop |
Apple and Walker Dunlop Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and Walker Dunlop
The main advantage of trading using opposite Apple and Walker Dunlop positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple position performs unexpectedly, Walker Dunlop 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 Walker Dunlop will offset losses from the drop in Walker Dunlop's long position.| Apple vs. Focus Home Interactive | Apple vs. Addus HomeCare | Apple vs. CITY OFFICE REIT | Apple vs. The Home Depot |
| Walker Dunlop vs. DIVERSIFIED ROYALTY | Walker Dunlop vs. Federal Home Loan | Walker Dunlop vs. Superior Plus Corp | Walker Dunlop vs. NMI Holdings |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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