Correlation Between Walker Dunlop and Lily Textile
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Lily Textile 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 Lily Textile into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Lily Textile Co, you can compare the effects of market volatilities on Walker Dunlop and Lily Textile 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 Lily Textile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Lily Textile.
Diversification Opportunities for Walker Dunlop and Lily Textile
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Walker and Lily is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Lily Textile Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lily Textile 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 Lily Textile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lily Textile has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Lily Textile go up and down completely randomly.
Pair Corralation between Walker Dunlop and Lily Textile
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 1.24 times less return on investment than Lily Textile. In addition to that, Walker Dunlop is 1.28 times more volatile than Lily Textile Co. It trades about 0.04 of its total potential returns per unit of risk. Lily Textile Co is currently generating about 0.06 per unit of volatility. If you would invest 2,155 in Lily Textile Co on August 26, 2024 and sell it today you would earn a total of 1,155 from holding Lily Textile Co or generate 53.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 96.78% |
| Values | Daily Returns |
Walker Dunlop vs. Lily Textile Co
Performance |
| Timeline |
| Walker Dunlop |
| Lily Textile |
Walker Dunlop and Lily Textile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Lily Textile
The main advantage of trading using opposite Walker Dunlop and Lily Textile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Lily Textile 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 Lily Textile will offset losses from the drop in Lily Textile'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 |
| Lily Textile vs. Taiwan Semiconductor Manufacturing | Lily Textile vs. Hon Hai Precision | Lily Textile vs. MediaTek | Lily Textile vs. Chunghwa Telecom 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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