Correlation Between Walker Dunlop and Aju IB
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Aju IB 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 Aju IB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Aju IB Investment, you can compare the effects of market volatilities on Walker Dunlop and Aju IB 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 Aju IB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Aju IB.
Diversification Opportunities for Walker Dunlop and Aju IB
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Walker and Aju is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Aju IB Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aju IB Investment 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 Aju IB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aju IB Investment has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Aju IB go up and down completely randomly.
Pair Corralation between Walker Dunlop and Aju IB
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 11.12 times less return on investment than Aju IB. But when comparing it to its historical volatility, Walker Dunlop is 6.41 times less risky than Aju IB. It trades about 0.11 of its potential returns per unit of risk. Aju IB Investment is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 206,500 in Aju IB Investment on September 3, 2024 and sell it today you would earn a total of 74,500 from holding Aju IB Investment or generate 36.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Walker Dunlop vs. Aju IB Investment
Performance |
| Timeline |
| Walker Dunlop |
| Aju IB Investment |
Walker Dunlop and Aju IB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Aju IB
The main advantage of trading using opposite Walker Dunlop and Aju IB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Aju IB 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 Aju IB will offset losses from the drop in Aju IB'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 |
| Aju IB vs. Atinum Investment Co | Aju IB vs. SBI Investment KOREA | Aju IB vs. Busan Industrial Co | Aju IB vs. UNISEM 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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