Correlation Between Walker Dunlop and GUOTAI JUNAN
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and GUOTAI JUNAN 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 GUOTAI JUNAN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and GUOTAI JUNAN SEC, you can compare the effects of market volatilities on Walker Dunlop and GUOTAI JUNAN 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 GUOTAI JUNAN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and GUOTAI JUNAN.
Diversification Opportunities for Walker Dunlop and GUOTAI JUNAN
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Walker and GUOTAI is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and GUOTAI JUNAN SEC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GUOTAI JUNAN SEC 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 GUOTAI JUNAN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GUOTAI JUNAN SEC has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and GUOTAI JUNAN go up and down completely randomly.
Pair Corralation between Walker Dunlop and GUOTAI JUNAN
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 2.91 times less return on investment than GUOTAI JUNAN. But when comparing it to its historical volatility, Walker Dunlop is 2.26 times less risky than GUOTAI JUNAN. It trades about 0.06 of its potential returns per unit of risk. GUOTAI JUNAN SEC is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 49.00 in GUOTAI JUNAN SEC on September 2, 2024 and sell it today you would earn a total of 86.00 from holding GUOTAI JUNAN SEC or generate 175.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.89% |
| Values | Daily Returns |
Walker Dunlop vs. GUOTAI JUNAN SEC
Performance |
| Timeline |
| Walker Dunlop |
| GUOTAI JUNAN SEC |
Walker Dunlop and GUOTAI JUNAN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and GUOTAI JUNAN
The main advantage of trading using opposite Walker Dunlop and GUOTAI JUNAN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, GUOTAI JUNAN 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 GUOTAI JUNAN will offset losses from the drop in GUOTAI JUNAN'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 |
| GUOTAI JUNAN vs. Morgan Stanley | GUOTAI JUNAN vs. The Goldman Sachs | GUOTAI JUNAN vs. Superior Plus Corp | GUOTAI JUNAN vs. NMI Holdings |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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