Correlation Between Walker Dunlop and Allstate
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Allstate 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 Allstate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and The Allstate, you can compare the effects of market volatilities on Walker Dunlop and Allstate 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 Allstate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Allstate.
Diversification Opportunities for Walker Dunlop and Allstate
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Walker and Allstate is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and The Allstate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allstate 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 Allstate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allstate has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Allstate go up and down completely randomly.
Pair Corralation between Walker Dunlop and Allstate
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 1.78 times more return on investment than Allstate. However, Walker Dunlop is 1.78 times more volatile than The Allstate. It trades about 0.04 of its potential returns per unit of risk. The Allstate is currently generating about 0.01 per unit of risk. If you would invest 7,931 in Walker Dunlop on August 31, 2024 and sell it today you would earn a total of 3,151 from holding Walker Dunlop or generate 39.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walker Dunlop vs. The Allstate
Performance |
| Timeline |
| Walker Dunlop |
| Allstate |
Walker Dunlop and Allstate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Allstate
The main advantage of trading using opposite Walker Dunlop and Allstate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Allstate 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 Allstate will offset losses from the drop in Allstate'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 |
| Allstate vs. Brighthouse Financial | Allstate vs. First Citizens BancShares | Allstate vs. Northern Trust | Allstate vs. Dime Community Bancshares |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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