Correlation Between Walker Dunlop and Africa Oil
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Africa Oil 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 Africa Oil into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Africa Oil Corp, you can compare the effects of market volatilities on Walker Dunlop and Africa Oil 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 Africa Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Africa Oil.
Diversification Opportunities for Walker Dunlop and Africa Oil
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Walker and Africa is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Africa Oil Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Africa Oil Corp 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 Africa Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Africa Oil Corp has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Africa Oil go up and down completely randomly.
Pair Corralation between Walker Dunlop and Africa Oil
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 0.92 times more return on investment than Africa Oil. However, Walker Dunlop is 1.09 times less risky than Africa Oil. It trades about 0.02 of its potential returns per unit of risk. Africa Oil Corp is currently generating about -0.03 per unit of risk. If you would invest 9,159 in Walker Dunlop on November 5, 2024 and sell it today you would earn a total of 259.00 from holding Walker Dunlop or generate 2.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.59% |
| Values | Daily Returns |
Walker Dunlop vs. Africa Oil Corp
Performance |
| Timeline |
| Walker Dunlop |
| Africa Oil Corp |
Walker Dunlop and Africa Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Africa Oil
The main advantage of trading using opposite Walker Dunlop and Africa Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Africa Oil 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 Africa Oil will offset losses from the drop in Africa Oil'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 |
| Africa Oil vs. International Petroleum | Africa Oil vs. Africa Energy Corp | Africa Oil vs. Africa Oil Corp | Africa Oil vs. Lundin Mining |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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