Correlation Between Walker Dunlop and Kedge Construction
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Kedge Construction 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 Kedge Construction into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Kedge Construction Co, you can compare the effects of market volatilities on Walker Dunlop and Kedge Construction 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 Kedge Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Kedge Construction.
Diversification Opportunities for Walker Dunlop and Kedge Construction
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Walker and Kedge is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Kedge Construction Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kedge Construction 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 Kedge Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kedge Construction has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Kedge Construction go up and down completely randomly.
Pair Corralation between Walker Dunlop and Kedge Construction
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 0.95 times more return on investment than Kedge Construction. However, Walker Dunlop is 1.06 times less risky than Kedge Construction. It trades about 0.09 of its potential returns per unit of risk. Kedge Construction Co is currently generating about 0.01 per unit of risk. If you would invest 7,194 in Walker Dunlop on September 1, 2024 and sell it today you would earn a total of 3,824 from holding Walker Dunlop or generate 53.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.51% |
| Values | Daily Returns |
Walker Dunlop vs. Kedge Construction Co
Performance |
| Timeline |
| Walker Dunlop |
| Kedge Construction |
Walker Dunlop and Kedge Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Kedge Construction
The main advantage of trading using opposite Walker Dunlop and Kedge Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Kedge Construction 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 Kedge Construction will offset losses from the drop in Kedge Construction'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 |
| Kedge Construction vs. BES Engineering Co | Kedge Construction vs. Continental Holdings Corp | Kedge Construction vs. Kee Tai Properties | Kedge Construction vs. Hung Sheng Construction |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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