Correlation Between Walker Dunlop and Altheora
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Altheora 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 Altheora into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Altheora SA, you can compare the effects of market volatilities on Walker Dunlop and Altheora 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 Altheora. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Altheora.
Diversification Opportunities for Walker Dunlop and Altheora
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Walker and Altheora is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Altheora SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altheora 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 Altheora. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altheora SA has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Altheora go up and down completely randomly.
Pair Corralation between Walker Dunlop and Altheora
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 0.62 times more return on investment than Altheora. However, Walker Dunlop is 1.62 times less risky than Altheora. It trades about 0.0 of its potential returns per unit of risk. Altheora SA is currently generating about -0.04 per unit of risk. If you would invest 11,127 in Walker Dunlop on August 30, 2024 and sell it today you would lose (45.00) from holding Walker Dunlop or give up 0.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walker Dunlop vs. Altheora SA
Performance |
| Timeline |
| Walker Dunlop |
| Altheora SA |
Walker Dunlop and Altheora Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Altheora
The main advantage of trading using opposite Walker Dunlop and Altheora positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Altheora 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 Altheora will offset losses from the drop in Altheora'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 |
| Altheora vs. LVMH Mot Hennessy | Altheora vs. LOreal SA | Altheora vs. Hermes International SCA | Altheora vs. Manitou BF SA |
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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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