Correlation Between Walker Dunlop and Apollo Bancorp
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Apollo Bancorp 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 Apollo Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Apollo Bancorp, you can compare the effects of market volatilities on Walker Dunlop and Apollo Bancorp 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 Apollo Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Apollo Bancorp.
Diversification Opportunities for Walker Dunlop and Apollo Bancorp
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Walker and Apollo is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Apollo Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apollo Bancorp 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 Apollo Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apollo Bancorp has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Apollo Bancorp go up and down completely randomly.
Pair Corralation between Walker Dunlop and Apollo Bancorp
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 2.89 times more return on investment than Apollo Bancorp. However, Walker Dunlop is 2.89 times more volatile than Apollo Bancorp. It trades about 0.05 of its potential returns per unit of risk. Apollo Bancorp is currently generating about -0.05 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 Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walker Dunlop vs. Apollo Bancorp
Performance |
| Timeline |
| Walker Dunlop |
| Apollo Bancorp |
Walker Dunlop and Apollo Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Apollo Bancorp
The main advantage of trading using opposite Walker Dunlop and Apollo Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Apollo Bancorp 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 Apollo Bancorp will offset losses from the drop in Apollo Bancorp'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 |
| Apollo Bancorp vs. Bank Mandiri Persero | Apollo Bancorp vs. Piraeus Bank SA | Apollo Bancorp vs. Kasikornbank Public Co | Apollo Bancorp vs. Turkiye Garanti Bankasi |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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