Correlation Between Walker Dunlop and Alger Capital
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Alger Capital 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 Alger Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Alger Capital Appreciation, you can compare the effects of market volatilities on Walker Dunlop and Alger Capital 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 Alger Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Alger Capital.
Diversification Opportunities for Walker Dunlop and Alger Capital
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Walker and Alger is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Alger Capital Appreciation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alger Capital Apprec 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 Alger Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alger Capital Apprec has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Alger Capital go up and down completely randomly.
Pair Corralation between Walker Dunlop and Alger Capital
Allowing for the 90-day total investment horizon Walker Dunlop is expected to under-perform the Alger Capital. In addition to that, Walker Dunlop is 1.16 times more volatile than Alger Capital Appreciation. It trades about -0.01 of its total potential returns per unit of risk. Alger Capital Appreciation is currently generating about 0.25 per unit of volatility. If you would invest 3,805 in Alger Capital Appreciation on August 29, 2024 and sell it today you would earn a total of 293.00 from holding Alger Capital Appreciation or generate 7.7% 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. Alger Capital Appreciation
Performance |
| Timeline |
| Walker Dunlop |
| Alger Capital Apprec |
Walker Dunlop and Alger Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Alger Capital
The main advantage of trading using opposite Walker Dunlop and Alger Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Alger Capital 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 Alger Capital will offset losses from the drop in Alger Capital'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 |
| Alger Capital vs. Alger Midcap Growth | Alger Capital vs. Alger Midcap Growth | Alger Capital vs. Alger Mid Cap | Alger Capital vs. Alger Small Cap |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |