Correlation Between Walker Dunlop and KIM KINDEX
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and KIM KINDEX 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 KIM KINDEX into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and KIM KINDEX Treasury, you can compare the effects of market volatilities on Walker Dunlop and KIM KINDEX 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 KIM KINDEX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and KIM KINDEX.
Diversification Opportunities for Walker Dunlop and KIM KINDEX
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Walker and KIM is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and KIM KINDEX Treasury in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KIM KINDEX Treasury 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 KIM KINDEX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KIM KINDEX Treasury has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and KIM KINDEX go up and down completely randomly.
Pair Corralation between Walker Dunlop and KIM KINDEX
Allowing for the 90-day total investment horizon Walker Dunlop is expected to under-perform the KIM KINDEX. In addition to that, Walker Dunlop is 17.23 times more volatile than KIM KINDEX Treasury. It trades about 0.0 of its total potential returns per unit of risk. KIM KINDEX Treasury is currently generating about 0.54 per unit of volatility. If you would invest 10,343,500 in KIM KINDEX Treasury on August 31, 2024 and sell it today you would earn a total of 113,500 from holding KIM KINDEX Treasury or generate 1.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walker Dunlop vs. KIM KINDEX Treasury
Performance |
| Timeline |
| Walker Dunlop |
| KIM KINDEX Treasury |
Walker Dunlop and KIM KINDEX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and KIM KINDEX
The main advantage of trading using opposite Walker Dunlop and KIM KINDEX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, KIM KINDEX 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 KIM KINDEX will offset losses from the drop in KIM KINDEX'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 |
| KIM KINDEX vs. KIM KINDEX 200 | KIM KINDEX vs. KIM KINDEX KOSPI | KIM KINDEX vs. KIM KINDEX Vietnam | KIM KINDEX vs. KIM KINDEX Synth China |
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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