Correlation Between Walker Dunlop and GFL ENVIRONM
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and GFL ENVIRONM 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 GFL ENVIRONM into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and GFL ENVIRONM, you can compare the effects of market volatilities on Walker Dunlop and GFL ENVIRONM 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 GFL ENVIRONM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and GFL ENVIRONM.
Diversification Opportunities for Walker Dunlop and GFL ENVIRONM
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Walker and GFL is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and GFL ENVIRONM in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GFL ENVIRONM 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 GFL ENVIRONM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GFL ENVIRONM has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and GFL ENVIRONM go up and down completely randomly.
Pair Corralation between Walker Dunlop and GFL ENVIRONM
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 1.73 times less return on investment than GFL ENVIRONM. But when comparing it to its historical volatility, Walker Dunlop is 1.07 times less risky than GFL ENVIRONM. It trades about 0.05 of its potential returns per unit of risk. GFL ENVIRONM is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 3,116 in GFL ENVIRONM on August 28, 2024 and sell it today you would earn a total of 1,244 from holding GFL ENVIRONM or generate 39.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.58% |
| Values | Daily Returns |
Walker Dunlop vs. GFL ENVIRONM
Performance |
| Timeline |
| Walker Dunlop |
| GFL ENVIRONM |
Walker Dunlop and GFL ENVIRONM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and GFL ENVIRONM
The main advantage of trading using opposite Walker Dunlop and GFL ENVIRONM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, GFL ENVIRONM 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 GFL ENVIRONM will offset losses from the drop in GFL ENVIRONM'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 |
| GFL ENVIRONM vs. Superior Plus Corp | GFL ENVIRONM vs. NMI Holdings | GFL ENVIRONM vs. Origin Agritech | GFL ENVIRONM vs. SIVERS SEMICONDUCTORS AB |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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