Correlation Between Walker Dunlop and AMADEUS IT
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and AMADEUS IT 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 AMADEUS IT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and AMADEUS IT GRP, you can compare the effects of market volatilities on Walker Dunlop and AMADEUS IT 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 AMADEUS IT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and AMADEUS IT.
Diversification Opportunities for Walker Dunlop and AMADEUS IT
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Walker and AMADEUS is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and AMADEUS IT GRP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMADEUS IT GRP 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 AMADEUS IT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMADEUS IT GRP has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and AMADEUS IT go up and down completely randomly.
Pair Corralation between Walker Dunlop and AMADEUS IT
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 1.28 times more return on investment than AMADEUS IT. However, Walker Dunlop is 1.28 times more volatile than AMADEUS IT GRP. It trades about -0.01 of its potential returns per unit of risk. AMADEUS IT GRP is currently generating about -0.08 per unit of risk. If you would invest 11,120 in Walker Dunlop on August 29, 2024 and sell it today you would lose (64.00) from holding Walker Dunlop or give up 0.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walker Dunlop vs. AMADEUS IT GRP
Performance |
| Timeline |
| Walker Dunlop |
| AMADEUS IT GRP |
Walker Dunlop and AMADEUS IT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and AMADEUS IT
The main advantage of trading using opposite Walker Dunlop and AMADEUS IT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, AMADEUS IT 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 AMADEUS IT will offset losses from the drop in AMADEUS IT'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 |
| AMADEUS IT vs. USWE SPORTS AB | AMADEUS IT vs. BW OFFSHORE LTD | AMADEUS IT vs. SOLSTAD OFFSHORE NK | AMADEUS IT vs. Solstad Offshore 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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