Correlation Between Walker Dunlop and Affiliated Resources
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Affiliated Resources 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 Affiliated Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Affiliated Resources Corp, you can compare the effects of market volatilities on Walker Dunlop and Affiliated Resources 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 Affiliated Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Affiliated Resources.
Diversification Opportunities for Walker Dunlop and Affiliated Resources
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Walker and Affiliated is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Affiliated Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Affiliated Resources Corp 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 Affiliated Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Affiliated Resources Corp has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Affiliated Resources go up and down completely randomly.
Pair Corralation between Walker Dunlop and Affiliated Resources
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 0.39 times more return on investment than Affiliated Resources. However, Walker Dunlop is 2.54 times less risky than Affiliated Resources. It trades about 0.0 of its potential returns per unit of risk. Affiliated Resources Corp is currently generating about -0.07 per unit of risk. If you would invest 11,122 in Walker Dunlop on August 31, 2024 and sell it today you would lose (40.00) from holding Walker Dunlop or give up 0.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walker Dunlop vs. Affiliated Resources Corp
Performance |
| Timeline |
| Walker Dunlop |
| Affiliated Resources Corp |
Walker Dunlop and Affiliated Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Affiliated Resources
The main advantage of trading using opposite Walker Dunlop and Affiliated Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Affiliated Resources 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 Affiliated Resources will offset losses from the drop in Affiliated Resources' 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 |
| Affiliated Resources vs. BRP Inc | Affiliated Resources vs. Arrow Electronics | Affiliated Resources vs. Playtika Holding Corp | Affiliated Resources vs. Playa Hotels Resorts |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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