Correlation Between Guild Holdings and Walker Dunlop
Can any of the company-specific risk be diversified away by investing in both Guild Holdings 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 Guild Holdings and Walker Dunlop into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guild Holdings Co and Walker Dunlop, you can compare the effects of market volatilities on Guild Holdings 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 Guild Holdings with a short position of Walker Dunlop. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guild Holdings and Walker Dunlop.
Diversification Opportunities for Guild Holdings and Walker Dunlop
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Guild and Walker is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Guild Holdings Co and Walker Dunlop in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Walker Dunlop and Guild Holdings 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 Guild Holdings Co 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 Guild Holdings i.e., Guild Holdings and Walker Dunlop go up and down completely randomly.
Pair Corralation between Guild Holdings and Walker Dunlop
If you would invest 9,462 in Walker Dunlop on November 6, 2024 and sell it today you would lose (44.00) from holding Walker Dunlop or give up 0.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guild Holdings Co vs. Walker Dunlop
Performance |
| Timeline |
| Guild Holdings |
| Walker Dunlop |
Guild Holdings and Walker Dunlop Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guild Holdings and Walker Dunlop
The main advantage of trading using opposite Guild Holdings and Walker Dunlop positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guild Holdings 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.| Guild Holdings vs. Mr Cooper Group | Guild Holdings vs. Encore Capital Group | Guild Holdings vs. CNFinance Holdings | Guild Holdings vs. Security National Financial |
| Walker Dunlop vs. Mr Cooper Group | Walker Dunlop vs. Velocity Financial Llc | Walker Dunlop vs. Security National Financial | Walker Dunlop vs. Encore Capital Group |
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 Stocks Directory module to find actively traded stocks across global markets.
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