Correlation Between Walker Dunlop and Immersion
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Immersion 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 Immersion into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Immersion SA, you can compare the effects of market volatilities on Walker Dunlop and Immersion 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 Immersion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Immersion.
Diversification Opportunities for Walker Dunlop and Immersion
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Walker and Immersion is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Immersion SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immersion SA 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 Immersion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immersion SA has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Immersion go up and down completely randomly.
Pair Corralation between Walker Dunlop and Immersion
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 0.36 times more return on investment than Immersion. However, Walker Dunlop is 2.8 times less risky than Immersion. It trades about 0.05 of its potential returns per unit of risk. Immersion SA is currently generating about -0.16 per unit of risk. 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 Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Walker Dunlop vs. Immersion SA
Performance |
| Timeline |
| Walker Dunlop |
| Immersion SA |
Walker Dunlop and Immersion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Immersion
The main advantage of trading using opposite Walker Dunlop and Immersion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Immersion 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 Immersion will offset losses from the drop in Immersion'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 |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |