Correlation Between Walker Dunlop and AF Gruppen
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and AF Gruppen 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 AF Gruppen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and AF Gruppen ASA, you can compare the effects of market volatilities on Walker Dunlop and AF Gruppen 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 AF Gruppen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and AF Gruppen.
Diversification Opportunities for Walker Dunlop and AF Gruppen
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Walker and AFG is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and AF Gruppen ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AF Gruppen ASA 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 AF Gruppen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AF Gruppen ASA has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and AF Gruppen go up and down completely randomly.
Pair Corralation between Walker Dunlop and AF Gruppen
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 1.31 times more return on investment than AF Gruppen. However, Walker Dunlop is 1.31 times more volatile than AF Gruppen ASA. It trades about 0.06 of its potential returns per unit of risk. AF Gruppen ASA is currently generating about 0.05 per unit of risk. If you would invest 9,181 in Walker Dunlop on September 1, 2024 and sell it today you would earn a total of 1,837 from holding Walker Dunlop or generate 20.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.47% |
| Values | Daily Returns |
Walker Dunlop vs. AF Gruppen ASA
Performance |
| Timeline |
| Walker Dunlop |
| AF Gruppen ASA |
Walker Dunlop and AF Gruppen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and AF Gruppen
The main advantage of trading using opposite Walker Dunlop and AF Gruppen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, AF Gruppen 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 AF Gruppen will offset losses from the drop in AF Gruppen'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 |
| AF Gruppen vs. Veidekke ASA | AF Gruppen vs. Gjensidige Forsikring ASA | AF Gruppen vs. Orkla ASA | AF Gruppen vs. Kongsberg Gruppen ASA |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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