Correlation Between Walker Dunlop and Asiana Airlines
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Asiana Airlines 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 Asiana Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Asiana Airlines, you can compare the effects of market volatilities on Walker Dunlop and Asiana Airlines 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 Asiana Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Asiana Airlines.
Diversification Opportunities for Walker Dunlop and Asiana Airlines
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Walker and Asiana is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Asiana Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asiana Airlines 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 Asiana Airlines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asiana Airlines has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Asiana Airlines go up and down completely randomly.
Pair Corralation between Walker Dunlop and Asiana Airlines
Allowing for the 90-day total investment horizon Walker Dunlop is expected to under-perform the Asiana Airlines. But the stock apears to be less risky and, when comparing its historical volatility, Walker Dunlop is 1.32 times less risky than Asiana Airlines. The stock trades about -0.01 of its potential returns per unit of risk. The Asiana Airlines is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 994,000 in Asiana Airlines on August 29, 2024 and sell it today you would earn a total of 105,000 from holding Asiana Airlines or generate 10.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walker Dunlop vs. Asiana Airlines
Performance |
| Timeline |
| Walker Dunlop |
| Asiana Airlines |
Walker Dunlop and Asiana Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Asiana Airlines
The main advantage of trading using opposite Walker Dunlop and Asiana Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Asiana Airlines 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 Asiana Airlines will offset losses from the drop in Asiana Airlines' 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 |
| Asiana Airlines vs. Home Center Holdings | Asiana Airlines vs. Hyunwoo Industrial Co | Asiana Airlines vs. Daelim Industrial Co | Asiana Airlines vs. Seoyon Topmetal Co |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |