Correlation Between Walker Dunlop and Agripower France
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Agripower France 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 Agripower France into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Agripower France Sa, you can compare the effects of market volatilities on Walker Dunlop and Agripower France 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 Agripower France. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Agripower France.
Diversification Opportunities for Walker Dunlop and Agripower France
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Walker and Agripower is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Agripower France Sa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agripower France 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 Agripower France. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agripower France has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Agripower France go up and down completely randomly.
Pair Corralation between Walker Dunlop and Agripower France
Allowing for the 90-day total investment horizon Walker Dunlop is expected to under-perform the Agripower France. But the stock apears to be less risky and, when comparing its historical volatility, Walker Dunlop is 3.02 times less risky than Agripower France. The stock trades about -0.29 of its potential returns per unit of risk. The Agripower France Sa is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 90.00 in Agripower France Sa on November 18, 2024 and sell it today you would earn a total of 20.00 from holding Agripower France Sa or generate 22.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Walker Dunlop vs. Agripower France Sa
Performance |
| Timeline |
| Walker Dunlop |
| Agripower France |
Walker Dunlop and Agripower France Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Agripower France
The main advantage of trading using opposite Walker Dunlop and Agripower France positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Agripower France 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 Agripower France will offset losses from the drop in Agripower France'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 |
| Agripower France vs. Glob Bioenergi | Agripower France vs. BIO UV Group | Agripower France vs. Voltalia SA | Agripower France vs. Hoffmann Green Cement |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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