Correlation Between Walker Dunlop and Air New
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Air New 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 Air New into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Air New Zealand, you can compare the effects of market volatilities on Walker Dunlop and Air New 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 Air New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Air New.
Diversification Opportunities for Walker Dunlop and Air New
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Walker and Air is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Air New Zealand in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air New Zealand 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 Air New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Air New Zealand has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Air New go up and down completely randomly.
Pair Corralation between Walker Dunlop and Air New
Allowing for the 90-day total investment horizon Walker Dunlop is expected to under-perform the Air New. In addition to that, Walker Dunlop is 1.26 times more volatile than Air New Zealand. It trades about -0.01 of its total potential returns per unit of risk. Air New Zealand is currently generating about 0.15 per unit of volatility. If you would invest 48.00 in Air New Zealand on August 29, 2024 and sell it today you would earn a total of 2.00 from holding Air New Zealand or generate 4.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walker Dunlop vs. Air New Zealand
Performance |
| Timeline |
| Walker Dunlop |
| Air New Zealand |
Walker Dunlop and Air New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Air New
The main advantage of trading using opposite Walker Dunlop and Air New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Air New 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 Air New will offset losses from the drop in Air New'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 |
| Air New vs. Macquarie Group | Air New vs. Macquarie Group Ltd | Air New vs. Commonwealth Bank | Air New vs. Rio Tinto |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |