Correlation Between Walker Dunlop and Shih Kuen
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Shih Kuen 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 Shih Kuen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Shih Kuen Plastics, you can compare the effects of market volatilities on Walker Dunlop and Shih Kuen 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 Shih Kuen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Shih Kuen.
Diversification Opportunities for Walker Dunlop and Shih Kuen
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Walker and Shih is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Shih Kuen Plastics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shih Kuen Plastics 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 Shih Kuen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shih Kuen Plastics has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Shih Kuen go up and down completely randomly.
Pair Corralation between Walker Dunlop and Shih Kuen
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 1.13 times more return on investment than Shih Kuen. However, Walker Dunlop is 1.13 times more volatile than Shih Kuen Plastics. It trades about 0.0 of its potential returns per unit of risk. Shih Kuen Plastics is currently generating about -0.23 per unit of risk. If you would invest 11,127 in Walker Dunlop on August 30, 2024 and sell it today you would lose (45.00) from holding Walker Dunlop or give up 0.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Walker Dunlop vs. Shih Kuen Plastics
Performance |
| Timeline |
| Walker Dunlop |
| Shih Kuen Plastics |
Walker Dunlop and Shih Kuen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Shih Kuen
The main advantage of trading using opposite Walker Dunlop and Shih Kuen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Shih Kuen 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 Shih Kuen will offset losses from the drop in Shih Kuen'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 |
| Shih Kuen vs. U Media Communications | Shih Kuen vs. Tainet Communication System | Shih Kuen vs. FDC International Hotels | Shih Kuen vs. Est Global Apparel |
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 Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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