Correlation Between Walker Dunlop and Anglo American
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Anglo American 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 Anglo American into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Anglo American Platinum, you can compare the effects of market volatilities on Walker Dunlop and Anglo American 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 Anglo American. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Anglo American.
Diversification Opportunities for Walker Dunlop and Anglo American
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Walker and Anglo is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Anglo American Platinum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anglo American Platinum 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 Anglo American. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anglo American Platinum has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Anglo American go up and down completely randomly.
Pair Corralation between Walker Dunlop and Anglo American
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 0.37 times more return on investment than Anglo American. However, Walker Dunlop is 2.73 times less risky than Anglo American. It trades about 0.05 of its potential returns per unit of risk. Anglo American Platinum is currently generating about -0.01 per unit of risk. If you would invest 7,629 in Walker Dunlop on August 30, 2024 and sell it today you would earn a total of 3,453 from holding Walker Dunlop or generate 45.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 73.74% |
| Values | Daily Returns |
Walker Dunlop vs. Anglo American Platinum
Performance |
| Timeline |
| Walker Dunlop |
| Anglo American Platinum |
Walker Dunlop and Anglo American Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Anglo American
The main advantage of trading using opposite Walker Dunlop and Anglo American positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Anglo American 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 Anglo American will offset losses from the drop in Anglo American'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 |
| Anglo American vs. Rave Restaurant Group | Anglo American vs. First Watch Restaurant | Anglo American vs. Sweetgreen | Anglo American vs. Kura Sushi USA |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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