Correlation Between Walker Dunlop and Afcon Holdings
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Afcon Holdings 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 Afcon Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Afcon Holdings, you can compare the effects of market volatilities on Walker Dunlop and Afcon Holdings 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 Afcon Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Afcon Holdings.
Diversification Opportunities for Walker Dunlop and Afcon Holdings
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Walker and Afcon is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Afcon Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Afcon Holdings 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 Afcon Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Afcon Holdings has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Afcon Holdings go up and down completely randomly.
Pair Corralation between Walker Dunlop and Afcon Holdings
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 0.96 times more return on investment than Afcon Holdings. However, Walker Dunlop is 1.04 times less risky than Afcon Holdings. It trades about 0.04 of its potential returns per unit of risk. Afcon Holdings is currently generating about -0.01 per unit of risk. If you would invest 7,967 in Walker Dunlop on September 3, 2024 and sell it today you would earn a total of 3,051 from holding Walker Dunlop or generate 38.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 77.98% |
| Values | Daily Returns |
Walker Dunlop vs. Afcon Holdings
Performance |
| Timeline |
| Walker Dunlop |
| Afcon Holdings |
Walker Dunlop and Afcon Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Afcon Holdings
The main advantage of trading using opposite Walker Dunlop and Afcon Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Afcon Holdings 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 Afcon Holdings will offset losses from the drop in Afcon Holdings' 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 |
| Afcon Holdings vs. Hilan | Afcon Holdings vs. Matrix | Afcon Holdings vs. AudioCodes | Afcon Holdings vs. Tadiran Hldg |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Stocks Directory Find actively traded stocks across global markets |