Correlation Between Walker Dunlop and Coremax Corp
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Coremax Corp 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 Coremax Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Coremax Corp, you can compare the effects of market volatilities on Walker Dunlop and Coremax Corp 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 Coremax Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Coremax Corp.
Diversification Opportunities for Walker Dunlop and Coremax Corp
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Walker and Coremax is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Coremax Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coremax Corp 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 Coremax Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coremax Corp has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Coremax Corp go up and down completely randomly.
Pair Corralation between Walker Dunlop and Coremax Corp
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 1.03 times more return on investment than Coremax Corp. However, Walker Dunlop is 1.03 times more volatile than Coremax Corp. It trades about 0.09 of its potential returns per unit of risk. Coremax Corp is currently generating about -0.03 per unit of risk. If you would invest 7,194 in Walker Dunlop on September 1, 2024 and sell it today you would earn a total of 3,824 from holding Walker Dunlop or generate 53.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.88% |
| Values | Daily Returns |
Walker Dunlop vs. Coremax Corp
Performance |
| Timeline |
| Walker Dunlop |
| Coremax Corp |
Walker Dunlop and Coremax Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Coremax Corp
The main advantage of trading using opposite Walker Dunlop and Coremax Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Coremax Corp 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 Coremax Corp will offset losses from the drop in Coremax Corp'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 |
| Coremax Corp vs. Mechema Chemicals Int | Coremax Corp vs. China Steel Chemical | Coremax Corp vs. Delta Electronics | Coremax Corp vs. Hota Industrial Mfg |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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