Correlation Between Walker Dunlop and J JILL
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and J JILL 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 J JILL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and J JILL INC, you can compare the effects of market volatilities on Walker Dunlop and J JILL 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 J JILL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and J JILL.
Diversification Opportunities for Walker Dunlop and J JILL
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Walker and 1MJ1 is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and J JILL INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on J JILL INC 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 J JILL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of J JILL INC has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and J JILL go up and down completely randomly.
Pair Corralation between Walker Dunlop and J JILL
Allowing for the 90-day total investment horizon Walker Dunlop is expected to under-perform the J JILL. But the stock apears to be less risky and, when comparing its historical volatility, Walker Dunlop is 1.85 times less risky than J JILL. The stock trades about -0.16 of its potential returns per unit of risk. The J JILL INC is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 2,240 in J JILL INC on August 25, 2024 and sell it today you would earn a total of 60.00 from holding J JILL INC or generate 2.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walker Dunlop vs. J JILL INC
Performance |
| Timeline |
| Walker Dunlop |
| J JILL INC |
Walker Dunlop and J JILL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and J JILL
The main advantage of trading using opposite Walker Dunlop and J JILL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, J JILL 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 J JILL will offset losses from the drop in J JILL's long position.| Walker Dunlop vs. Encore Capital Group | Walker Dunlop vs. Federal Home Loan | Walker Dunlop vs. CNFinance Holdings | Walker Dunlop vs. Greystone Housing Impact |
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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