Correlation Between Walker Dunlop and Agfa Gevaert
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Agfa Gevaert 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 Agfa Gevaert into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Agfa Gevaert NV, you can compare the effects of market volatilities on Walker Dunlop and Agfa Gevaert 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 Agfa Gevaert. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Agfa Gevaert.
Diversification Opportunities for Walker Dunlop and Agfa Gevaert
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Walker and Agfa is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Agfa Gevaert NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agfa Gevaert NV 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 Agfa Gevaert. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agfa Gevaert NV has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Agfa Gevaert go up and down completely randomly.
Pair Corralation between Walker Dunlop and Agfa Gevaert
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 0.16 times more return on investment than Agfa Gevaert. However, Walker Dunlop is 6.28 times less risky than Agfa Gevaert. It trades about -0.13 of its potential returns per unit of risk. Agfa Gevaert NV is currently generating about -0.21 per unit of risk. If you would invest 11,050 in Walker Dunlop on September 12, 2024 and sell it today you would lose (408.00) from holding Walker Dunlop or give up 3.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Walker Dunlop vs. Agfa Gevaert NV
Performance |
| Timeline |
| Walker Dunlop |
| Agfa Gevaert NV |
Walker Dunlop and Agfa Gevaert Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Agfa Gevaert
The main advantage of trading using opposite Walker Dunlop and Agfa Gevaert positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Agfa Gevaert 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 Agfa Gevaert will offset losses from the drop in Agfa Gevaert'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 |
| Agfa Gevaert vs. Enerpac Tool Group | Agfa Gevaert vs. Omega Flex | Agfa Gevaert vs. Luxfer Holdings PLC | Agfa Gevaert vs. Gorman Rupp |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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