Correlation Between Walker Dunlop and Core Plus
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Core Plus 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 Core Plus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Core Plus Fund, you can compare the effects of market volatilities on Walker Dunlop and Core Plus 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 Core Plus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Core Plus.
Diversification Opportunities for Walker Dunlop and Core Plus
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Walker and Core is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Core Plus Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Core Plus Fund 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 Core Plus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Core Plus Fund has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Core Plus go up and down completely randomly.
Pair Corralation between Walker Dunlop and Core Plus
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 4.86 times more return on investment than Core Plus. However, Walker Dunlop is 4.86 times more volatile than Core Plus Fund. It trades about 0.04 of its potential returns per unit of risk. Core Plus Fund is currently generating about -0.03 per unit of risk. If you would invest 11,120 in Walker Dunlop on August 28, 2024 and sell it today you would earn a total of 129.00 from holding Walker Dunlop or generate 1.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walker Dunlop vs. Core Plus Fund
Performance |
| Timeline |
| Walker Dunlop |
| Core Plus Fund |
Walker Dunlop and Core Plus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Core Plus
The main advantage of trading using opposite Walker Dunlop and Core Plus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Core Plus 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 Core Plus will offset losses from the drop in Core Plus' 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 |
| Core Plus vs. Mid Cap Value | Core Plus vs. Equity Growth Fund | Core Plus vs. Income Growth Fund | Core Plus vs. Diversified Bond Fund |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Stocks Directory Find actively traded stocks across global markets | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |