Correlation Between Walker Dunlop and Wedia SA
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Wedia SA 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 Wedia SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Wedia SA, you can compare the effects of market volatilities on Walker Dunlop and Wedia SA 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 Wedia SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Wedia SA.
Diversification Opportunities for Walker Dunlop and Wedia SA
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Walker and Wedia is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Wedia SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wedia 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 Wedia SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wedia SA has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Wedia SA go up and down completely randomly.
Pair Corralation between Walker Dunlop and Wedia SA
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 1.0 times less return on investment than Wedia SA. In addition to that, Walker Dunlop is 1.21 times more volatile than Wedia SA. It trades about 0.08 of its total potential returns per unit of risk. Wedia SA is currently generating about 0.1 per unit of volatility. If you would invest 2,580 in Wedia SA on September 1, 2024 and sell it today you would earn a total of 500.00 from holding Wedia SA or generate 19.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 96.92% |
| Values | Daily Returns |
Walker Dunlop vs. Wedia SA
Performance |
| Timeline |
| Walker Dunlop |
| Wedia SA |
Walker Dunlop and Wedia SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Wedia SA
The main advantage of trading using opposite Walker Dunlop and Wedia SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Wedia SA 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 Wedia SA will offset losses from the drop in Wedia SA'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 |
| Wedia SA vs. Chargeurs SA | Wedia SA vs. Straumann Holding AG | Wedia SA vs. Manitou BF SA | Wedia SA vs. Amundi Index Solutions |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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