Correlation Between Walker Dunlop and SK Hynix
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and SK Hynix 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 Walker Dunlop and SK Hynix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and SK Hynix, you can compare the effects of market volatilities on Walker Dunlop and SK Hynix 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 Walker Dunlop with a short position of SK Hynix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and SK Hynix.
Diversification Opportunities for Walker Dunlop and SK Hynix
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Walker and 000660 is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and SK Hynix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SK Hynix and Walker Dunlop 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 Walker Dunlop are associated (or correlated) with SK Hynix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SK Hynix has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and SK Hynix go up and down completely randomly.
Pair Corralation between Walker Dunlop and SK Hynix
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 0.49 times more return on investment than SK Hynix. However, Walker Dunlop is 2.06 times less risky than SK Hynix. It trades about 0.22 of its potential returns per unit of risk. SK Hynix is currently generating about 0.0 per unit of risk. If you would invest 8,737 in Walker Dunlop on November 10, 2024 and sell it today you would earn a total of 697.00 from holding Walker Dunlop or generate 7.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 90.0% |
| Values | Daily Returns |
Walker Dunlop vs. SK Hynix
Performance |
| Timeline |
| Walker Dunlop |
| SK Hynix |
Walker Dunlop and SK Hynix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and SK Hynix
The main advantage of trading using opposite Walker Dunlop and SK Hynix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, SK Hynix 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 SK Hynix will offset losses from the drop in SK Hynix's long position.| Walker Dunlop vs. Mr Cooper Group | Walker Dunlop vs. Velocity Financial Llc | Walker Dunlop vs. Security National Financial | Walker Dunlop vs. Encore Capital Group |
| SK Hynix vs. Ssangyong Information Communication | SK Hynix vs. Korea Shipbuilding Offshore | SK Hynix vs. GS Engineering Construction | SK Hynix vs. Genie Music |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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