Correlation Between DAX Index and Walker Dunlop
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By analyzing existing cross correlation between DAX Index and Walker Dunlop, you can compare the effects of market volatilities on DAX Index 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 DAX Index with a short position of Walker Dunlop. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Walker Dunlop.
Diversification Opportunities for DAX Index and Walker Dunlop
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between DAX and Walker is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index and Walker Dunlop in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Walker Dunlop and DAX Index 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 DAX Index 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 DAX Index i.e., DAX Index and Walker Dunlop go up and down completely randomly.
Pair Corralation between DAX Index and Walker Dunlop
Assuming the 90 days trading horizon DAX Index is expected to generate 0.29 times more return on investment than Walker Dunlop. However, DAX Index is 3.48 times less risky than Walker Dunlop. It trades about 0.54 of its potential returns per unit of risk. Walker Dunlop is currently generating about -0.07 per unit of risk. If you would invest 1,998,432 in DAX Index on October 28, 2024 and sell it today you would earn a total of 141,061 from holding DAX Index or generate 7.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. Walker Dunlop
Performance |
| Timeline |
DAX Index and Walker Dunlop Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Walker Dunlop
Pair trading matchups for Walker Dunlop
Pair Trading with DAX Index and Walker Dunlop
The main advantage of trading using opposite DAX Index and Walker Dunlop positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index 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.| DAX Index vs. Tianjin Capital Environmental | DAX Index vs. Cars Inc | DAX Index vs. INTER CARS SA | DAX Index vs. Khiron Life Sciences |
| Walker Dunlop vs. Algonquin Power Utilities | Walker Dunlop vs. TELECOM ITALIA | Walker Dunlop vs. Singapore Telecommunications Limited | Walker Dunlop vs. PRECISION DRILLING P |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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