Correlation Between Walker Dunlop and Fortune Electric
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Fortune Electric 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 Fortune Electric into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Fortune Electric Co, you can compare the effects of market volatilities on Walker Dunlop and Fortune Electric 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 Fortune Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Fortune Electric.
Diversification Opportunities for Walker Dunlop and Fortune Electric
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Walker and Fortune is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Fortune Electric Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fortune Electric 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 Fortune Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fortune Electric has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Fortune Electric go up and down completely randomly.
Pair Corralation between Walker Dunlop and Fortune Electric
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 16.34 times less return on investment than Fortune Electric. But when comparing it to its historical volatility, Walker Dunlop is 1.92 times less risky than Fortune Electric. It trades about 0.02 of its potential returns per unit of risk. Fortune Electric Co is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 5,287 in Fortune Electric Co on November 5, 2024 and sell it today you would earn a total of 51,513 from holding Fortune Electric Co or generate 974.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.17% |
| Values | Daily Returns |
Walker Dunlop vs. Fortune Electric Co
Performance |
| Timeline |
| Walker Dunlop |
| Fortune Electric |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Walker Dunlop and Fortune Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Fortune Electric
The main advantage of trading using opposite Walker Dunlop and Fortune Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Fortune Electric 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 Fortune Electric will offset losses from the drop in Fortune Electric'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 |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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