Correlation Between Walker Dunlop and Chun Yuan
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Chun Yuan 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 Chun Yuan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Chun Yuan Steel, you can compare the effects of market volatilities on Walker Dunlop and Chun Yuan 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 Chun Yuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Chun Yuan.
Diversification Opportunities for Walker Dunlop and Chun Yuan
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Walker and Chun is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Chun Yuan Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chun Yuan Steel 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 Chun Yuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chun Yuan Steel has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Chun Yuan go up and down completely randomly.
Pair Corralation between Walker Dunlop and Chun Yuan
Allowing for the 90-day total investment horizon Walker Dunlop is expected to under-perform the Chun Yuan. In addition to that, Walker Dunlop is 1.87 times more volatile than Chun Yuan Steel. It trades about -0.24 of its total potential returns per unit of risk. Chun Yuan Steel is currently generating about 0.04 per unit of volatility. If you would invest 1,855 in Chun Yuan Steel on November 27, 2024 and sell it today you would earn a total of 35.00 from holding Chun Yuan Steel or generate 1.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 96.55% |
| Values | Daily Returns |
Walker Dunlop vs. Chun Yuan Steel
Performance |
| Timeline |
| Walker Dunlop |
| Chun Yuan Steel |
Walker Dunlop and Chun Yuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Chun Yuan
The main advantage of trading using opposite Walker Dunlop and Chun Yuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Chun Yuan 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 Chun Yuan will offset losses from the drop in Chun Yuan'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 |
| Chun Yuan vs. Hsin Kuang Steel | Chun Yuan vs. Chung Hung Steel | Chun Yuan vs. China Steel Structure | Chun Yuan vs. Feng Hsin Steel |
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 Stocks Directory module to find actively traded stocks across global markets.
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