Correlation Between Walker Dunlop and Apple
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Apple 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 Apple into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Apple Inc, you can compare the effects of market volatilities on Walker Dunlop and Apple 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 Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Apple.
Diversification Opportunities for Walker Dunlop and Apple
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Walker and Apple is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc 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 Apple. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple Inc has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Apple go up and down completely randomly.
Pair Corralation between Walker Dunlop and Apple
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 1.22 times less return on investment than Apple. In addition to that, Walker Dunlop is 1.57 times more volatile than Apple Inc. It trades about 0.04 of its total potential returns per unit of risk. Apple Inc is currently generating about 0.07 per unit of volatility. If you would invest 14,510 in Apple Inc on August 26, 2024 and sell it today you would earn a total of 8,477 from holding Apple Inc or generate 58.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walker Dunlop vs. Apple Inc
Performance |
| Timeline |
| Walker Dunlop |
| Apple Inc |
Walker Dunlop and Apple Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Apple
The main advantage of trading using opposite Walker Dunlop and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Apple 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 Apple will offset losses from the drop in Apple'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 |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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