Correlation Between Walker Dunlop and Macquarie Group
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Macquarie Group 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 Macquarie Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Macquarie Group Limited, you can compare the effects of market volatilities on Walker Dunlop and Macquarie Group 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 Macquarie Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Macquarie Group.
Diversification Opportunities for Walker Dunlop and Macquarie Group
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Walker and Macquarie is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Macquarie Group Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Macquarie Group 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 Macquarie Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Macquarie Group has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Macquarie Group go up and down completely randomly.
Pair Corralation between Walker Dunlop and Macquarie Group
Allowing for the 90-day total investment horizon Walker Dunlop is expected to under-perform the Macquarie Group. But the stock apears to be less risky and, when comparing its historical volatility, Walker Dunlop is 1.02 times less risky than Macquarie Group. The stock trades about -0.01 of its potential returns per unit of risk. The Macquarie Group Limited is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 13,799 in Macquarie Group Limited on August 29, 2024 and sell it today you would earn a total of 433.00 from holding Macquarie Group Limited or generate 3.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Walker Dunlop vs. Macquarie Group Limited
Performance |
| Timeline |
| Walker Dunlop |
| Macquarie Group |
Walker Dunlop and Macquarie Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Macquarie Group
The main advantage of trading using opposite Walker Dunlop and Macquarie Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Macquarie Group 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 Macquarie Group will offset losses from the drop in Macquarie Group'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 |
| Macquarie Group vs. Monster Beverage Corp | Macquarie Group vs. Molson Coors Beverage | Macquarie Group vs. National Retail Properties | Macquarie Group vs. CANON MARKETING JP |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |