Correlation Between Walker Dunlop and AGBA Acquisition
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and AGBA Acquisition 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 AGBA Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and AGBA Acquisition, you can compare the effects of market volatilities on Walker Dunlop and AGBA Acquisition 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 AGBA Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and AGBA Acquisition.
Diversification Opportunities for Walker Dunlop and AGBA Acquisition
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Walker and AGBA is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and AGBA Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGBA Acquisition 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 AGBA Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AGBA Acquisition has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and AGBA Acquisition go up and down completely randomly.
Pair Corralation between Walker Dunlop and AGBA Acquisition
If you would invest 10,870 in Walker Dunlop on September 1, 2024 and sell it today you would earn a total of 148.00 from holding Walker Dunlop or generate 1.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Walker Dunlop vs. AGBA Acquisition
Performance |
| Timeline |
| Walker Dunlop |
| AGBA Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Walker Dunlop and AGBA Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and AGBA Acquisition
The main advantage of trading using opposite Walker Dunlop and AGBA Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, AGBA Acquisition 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 AGBA Acquisition will offset losses from the drop in AGBA Acquisition'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 |
| AGBA Acquisition vs. Magic Empire Global | AGBA Acquisition vs. Netcapital | AGBA Acquisition vs. Mercurity Fintech Holding | AGBA Acquisition vs. Zhong Yang Financial |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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