Correlation Between Walker Dunlop and Samji Electronics
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Samji Electronics 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 Samji Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Samji Electronics Co, you can compare the effects of market volatilities on Walker Dunlop and Samji Electronics 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 Samji Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Samji Electronics.
Diversification Opportunities for Walker Dunlop and Samji Electronics
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Walker and Samji is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Samji Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samji Electronics 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 Samji Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samji Electronics has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Samji Electronics go up and down completely randomly.
Pair Corralation between Walker Dunlop and Samji Electronics
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 1.8 times more return on investment than Samji Electronics. However, Walker Dunlop is 1.8 times more volatile than Samji Electronics Co. It trades about 0.05 of its potential returns per unit of risk. Samji Electronics Co is currently generating about -0.22 per unit of risk. If you would invest 10,870 in Walker Dunlop on September 1, 2024 and sell it today you would earn a total of 148.00 from holding Walker Dunlop or generate 1.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Walker Dunlop vs. Samji Electronics Co
Performance |
| Timeline |
| Walker Dunlop |
| Samji Electronics |
Walker Dunlop and Samji Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Samji Electronics
The main advantage of trading using opposite Walker Dunlop and Samji Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Samji Electronics 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 Samji Electronics will offset losses from the drop in Samji Electronics' 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 |
| Samji Electronics vs. Dongsin Engineering Construction | Samji Electronics vs. Doosan Fuel Cell | Samji Electronics vs. Daishin Balance 1 | Samji Electronics vs. Total Soft Bank |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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