Correlation Between Walker Dunlop and Asia Polymer
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Asia Polymer 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 Asia Polymer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Asia Polymer Corp, you can compare the effects of market volatilities on Walker Dunlop and Asia Polymer 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 Asia Polymer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Asia Polymer.
Diversification Opportunities for Walker Dunlop and Asia Polymer
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Walker and Asia is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Asia Polymer Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asia Polymer Corp 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 Asia Polymer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asia Polymer Corp has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Asia Polymer go up and down completely randomly.
Pair Corralation between Walker Dunlop and Asia Polymer
Allowing for the 90-day total investment horizon Walker Dunlop is expected to under-perform the Asia Polymer. But the stock apears to be less risky and, when comparing its historical volatility, Walker Dunlop is 2.13 times less risky than Asia Polymer. The stock trades about -0.01 of its potential returns per unit of risk. The Asia Polymer Corp is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,675 in Asia Polymer Corp on August 29, 2024 and sell it today you would earn a total of 30.00 from holding Asia Polymer Corp or generate 1.79% 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. Asia Polymer Corp
Performance |
| Timeline |
| Walker Dunlop |
| Asia Polymer Corp |
Walker Dunlop and Asia Polymer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Asia Polymer
The main advantage of trading using opposite Walker Dunlop and Asia Polymer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Asia Polymer 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 Asia Polymer will offset losses from the drop in Asia Polymer'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 |
| Asia Polymer vs. Cheng Shin Rubber | Asia Polymer vs. China Steel Chemical | Asia Polymer vs. Yulon Motor 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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