Correlation Between Walker Dunlop and Tjk Machinery
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By analyzing existing cross correlation between Walker Dunlop and Tjk Machinery Tianjin, you can compare the effects of market volatilities on Walker Dunlop and Tjk Machinery 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 Tjk Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Tjk Machinery.
Diversification Opportunities for Walker Dunlop and Tjk Machinery
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Walker and Tjk is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Tjk Machinery Tianjin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tjk Machinery Tianjin 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 Tjk Machinery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tjk Machinery Tianjin has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Tjk Machinery go up and down completely randomly.
Pair Corralation between Walker Dunlop and Tjk Machinery
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 1.78 times less return on investment than Tjk Machinery. But when comparing it to its historical volatility, Walker Dunlop is 1.71 times less risky than Tjk Machinery. It trades about 0.03 of its potential returns per unit of risk. Tjk Machinery Tianjin is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,194 in Tjk Machinery Tianjin on November 9, 2024 and sell it today you would earn a total of 187.00 from holding Tjk Machinery Tianjin or generate 15.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 96.35% |
| Values | Daily Returns |
Walker Dunlop vs. Tjk Machinery Tianjin
Performance |
| Timeline |
| Walker Dunlop |
| Tjk Machinery Tianjin |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Walker Dunlop and Tjk Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Tjk Machinery
The main advantage of trading using opposite Walker Dunlop and Tjk Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Tjk Machinery 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 Tjk Machinery will offset losses from the drop in Tjk Machinery'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 |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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