Correlation Between Walker Dunlop and China Shengmu
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and China Shengmu 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 China Shengmu into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and China Shengmu Organic, you can compare the effects of market volatilities on Walker Dunlop and China Shengmu 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 China Shengmu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and China Shengmu.
Diversification Opportunities for Walker Dunlop and China Shengmu
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Walker and China is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and China Shengmu Organic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Shengmu Organic 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 China Shengmu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Shengmu Organic has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and China Shengmu go up and down completely randomly.
Pair Corralation between Walker Dunlop and China Shengmu
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 0.64 times more return on investment than China Shengmu. However, Walker Dunlop is 1.55 times less risky than China Shengmu. It trades about 0.06 of its potential returns per unit of risk. China Shengmu Organic is currently generating about -0.01 per unit of risk. If you would invest 7,595 in Walker Dunlop on September 2, 2024 and sell it today you would earn a total of 3,423 from holding Walker Dunlop or generate 45.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.89% |
| Values | Daily Returns |
Walker Dunlop vs. China Shengmu Organic
Performance |
| Timeline |
| Walker Dunlop |
| China Shengmu Organic |
Walker Dunlop and China Shengmu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and China Shengmu
The main advantage of trading using opposite Walker Dunlop and China Shengmu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, China Shengmu 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 China Shengmu will offset losses from the drop in China Shengmu'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 |
| China Shengmu vs. Apple Inc | China Shengmu vs. Apple Inc | China Shengmu vs. Apple Inc | China Shengmu vs. Apple Inc |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |