Correlation Between Walker Dunlop and Thai Energy
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Thai Energy 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 Thai Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Thai Energy Storage, you can compare the effects of market volatilities on Walker Dunlop and Thai Energy 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 Thai Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Thai Energy.
Diversification Opportunities for Walker Dunlop and Thai Energy
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Walker and Thai is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Thai Energy Storage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Energy Storage 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 Thai Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai Energy Storage has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Thai Energy go up and down completely randomly.
Pair Corralation between Walker Dunlop and Thai Energy
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 45.3 times less return on investment than Thai Energy. But when comparing it to its historical volatility, Walker Dunlop is 49.44 times less risky than Thai Energy. It trades about 0.09 of its potential returns per unit of risk. Thai Energy Storage is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 5,250 in Thai Energy Storage on August 28, 2024 and sell it today you would earn a total of 125.00 from holding Thai Energy Storage or generate 2.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 96.83% |
| Values | Daily Returns |
Walker Dunlop vs. Thai Energy Storage
Performance |
| Timeline |
| Walker Dunlop |
| Thai Energy Storage |
Walker Dunlop and Thai Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Thai Energy
The main advantage of trading using opposite Walker Dunlop and Thai Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Thai Energy 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 Thai Energy will offset losses from the drop in Thai Energy'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 |
| Thai Energy vs. AJ Advance Technology | Thai Energy vs. Asia Precision Public | Thai Energy vs. Asia Metal Public | Thai Energy vs. The Erawan 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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