Correlation Between Walker Dunlop and BGF Retail
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and BGF Retail 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 BGF Retail into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and BGF Retail Co, you can compare the effects of market volatilities on Walker Dunlop and BGF Retail 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 BGF Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and BGF Retail.
Diversification Opportunities for Walker Dunlop and BGF Retail
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Walker and BGF is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and BGF Retail Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BGF Retail 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 BGF Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BGF Retail has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and BGF Retail go up and down completely randomly.
Pair Corralation between Walker Dunlop and BGF Retail
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 1.0 times more return on investment than BGF Retail. However, Walker Dunlop is 1.0 times less risky than BGF Retail. It trades about 0.08 of its potential returns per unit of risk. BGF Retail Co is currently generating about -0.03 per unit of risk. If you would invest 9,481 in Walker Dunlop on August 29, 2024 and sell it today you would earn a total of 1,575 from holding Walker Dunlop or generate 16.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 96.0% |
| Values | Daily Returns |
Walker Dunlop vs. BGF Retail Co
Performance |
| Timeline |
| Walker Dunlop |
| BGF Retail |
Walker Dunlop and BGF Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and BGF Retail
The main advantage of trading using opposite Walker Dunlop and BGF Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, BGF Retail 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 BGF Retail will offset losses from the drop in BGF Retail'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 |
| BGF Retail vs. AptaBio Therapeutics | BGF Retail vs. Daewoo SBI SPAC | BGF Retail vs. Dream Security co | BGF Retail vs. Microfriend |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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