Correlation Between Walker Dunlop and Ligao Foods
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By analyzing existing cross correlation between Walker Dunlop and Ligao Foods CoLtd, you can compare the effects of market volatilities on Walker Dunlop and Ligao Foods 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 Ligao Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Ligao Foods.
Diversification Opportunities for Walker Dunlop and Ligao Foods
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Walker and Ligao is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Ligao Foods CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ligao Foods CoLtd 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 Ligao Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ligao Foods CoLtd has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Ligao Foods go up and down completely randomly.
Pair Corralation between Walker Dunlop and Ligao Foods
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 6.38 times less return on investment than Ligao Foods. But when comparing it to its historical volatility, Walker Dunlop is 2.69 times less risky than Ligao Foods. It trades about 0.08 of its potential returns per unit of risk. Ligao Foods CoLtd is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 2,291 in Ligao Foods CoLtd on August 28, 2024 and sell it today you would earn a total of 1,147 from holding Ligao Foods CoLtd or generate 50.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
Walker Dunlop vs. Ligao Foods CoLtd
Performance |
| Timeline |
| Walker Dunlop |
| Ligao Foods CoLtd |
Walker Dunlop and Ligao Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Ligao Foods
The main advantage of trading using opposite Walker Dunlop and Ligao Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Ligao Foods 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 Ligao Foods will offset losses from the drop in Ligao Foods' 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 |
| Ligao Foods vs. Northking Information Technology | Ligao Foods vs. Jiujiang Shanshui Technology | Ligao Foods vs. Kuangda Technology Group | Ligao Foods vs. Omnijoi Media Corp |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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