Correlation Between Walker Dunlop and Cardinal Health
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Cardinal Health 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 Cardinal Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Cardinal Health, you can compare the effects of market volatilities on Walker Dunlop and Cardinal Health 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 Cardinal Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Cardinal Health.
Diversification Opportunities for Walker Dunlop and Cardinal Health
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Walker and Cardinal is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Cardinal Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cardinal Health 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 Cardinal Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cardinal Health has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Cardinal Health go up and down completely randomly.
Pair Corralation between Walker Dunlop and Cardinal Health
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 7.28 times less return on investment than Cardinal Health. In addition to that, Walker Dunlop is 1.01 times more volatile than Cardinal Health. It trades about 0.02 of its total potential returns per unit of risk. Cardinal Health is currently generating about 0.16 per unit of volatility. If you would invest 10,900 in Cardinal Health on August 28, 2024 and sell it today you would earn a total of 1,248 from holding Cardinal Health or generate 11.45% 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. Cardinal Health
Performance |
| Timeline |
| Walker Dunlop |
| Cardinal Health |
Walker Dunlop and Cardinal Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Cardinal Health
The main advantage of trading using opposite Walker Dunlop and Cardinal Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Cardinal Health 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 Cardinal Health will offset losses from the drop in Cardinal Health'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 |
| Cardinal Health vs. Arrow Electronics | Cardinal Health vs. Zoom Video Communications | Cardinal Health vs. BE Semiconductor Industries | Cardinal Health vs. Compagnie Plastic Omnium |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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