Correlation Between Walker Dunlop and Mahaka Media
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Mahaka Media 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 Mahaka Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Mahaka Media Tbk, you can compare the effects of market volatilities on Walker Dunlop and Mahaka Media 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 Mahaka Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Mahaka Media.
Diversification Opportunities for Walker Dunlop and Mahaka Media
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Walker and Mahaka is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Mahaka Media Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mahaka Media Tbk 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 Mahaka Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mahaka Media Tbk has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Mahaka Media go up and down completely randomly.
Pair Corralation between Walker Dunlop and Mahaka Media
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 0.61 times more return on investment than Mahaka Media. However, Walker Dunlop is 1.65 times less risky than Mahaka Media. It trades about 0.01 of its potential returns per unit of risk. Mahaka Media Tbk is currently generating about -0.09 per unit of risk. If you would invest 8,289 in Walker Dunlop on November 20, 2024 and sell it today you would earn a total of 283.00 from holding Walker Dunlop or generate 3.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 94.34% |
| Values | Daily Returns |
Walker Dunlop vs. Mahaka Media Tbk
Performance |
| Timeline |
| Walker Dunlop |
| Mahaka Media Tbk |
Walker Dunlop and Mahaka Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Mahaka Media
The main advantage of trading using opposite Walker Dunlop and Mahaka Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Mahaka Media 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 Mahaka Media will offset losses from the drop in Mahaka Media'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 |
| Mahaka Media vs. Akbar Indomakmur Stimec | Mahaka Media vs. Bayu Buana Tbk | Mahaka Media vs. Centratama Telekomunikasi Ind | Mahaka Media vs. Fortune Indonesia Tbk |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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