Correlation Between Walker Dunlop and Leverage Shares
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Leverage Shares 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 Leverage Shares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Leverage Shares 2x, you can compare the effects of market volatilities on Walker Dunlop and Leverage Shares 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 Leverage Shares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Leverage Shares.
Diversification Opportunities for Walker Dunlop and Leverage Shares
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Walker and Leverage is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Leverage Shares 2x in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leverage Shares 2x 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 Leverage Shares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leverage Shares 2x has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Leverage Shares go up and down completely randomly.
Pair Corralation between Walker Dunlop and Leverage Shares
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 0.27 times more return on investment than Leverage Shares. However, Walker Dunlop is 3.71 times less risky than Leverage Shares. It trades about -0.16 of its potential returns per unit of risk. Leverage Shares 2x is currently generating about -0.16 per unit of risk. If you would invest 11,429 in Walker Dunlop on August 25, 2024 and sell it today you would lose (580.00) from holding Walker Dunlop or give up 5.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walker Dunlop vs. Leverage Shares 2x
Performance |
| Timeline |
| Walker Dunlop |
| Leverage Shares 2x |
Walker Dunlop and Leverage Shares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Leverage Shares
The main advantage of trading using opposite Walker Dunlop and Leverage Shares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Leverage Shares 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 Leverage Shares will offset losses from the drop in Leverage Shares' 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 |
| Leverage Shares vs. Leverage Shares 3x | Leverage Shares vs. WisdomTree SP 500 | Leverage Shares vs. WisdomTree Silver 3x | Leverage Shares vs. Leverage Shares 3x |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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