Correlation Between Walker Dunlop and AQ Group
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and AQ Group 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 AQ Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and AQ Group AB, you can compare the effects of market volatilities on Walker Dunlop and AQ Group 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 AQ Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and AQ Group.
Diversification Opportunities for Walker Dunlop and AQ Group
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Walker and AQ Group is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and AQ Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AQ Group AB 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 AQ Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AQ Group AB has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and AQ Group go up and down completely randomly.
Pair Corralation between Walker Dunlop and AQ Group
Allowing for the 90-day total investment horizon Walker Dunlop is expected to under-perform the AQ Group. But the stock apears to be less risky and, when comparing its historical volatility, Walker Dunlop is 1.27 times less risky than AQ Group. The stock trades about -0.13 of its potential returns per unit of risk. The AQ Group AB is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 13,608 in AQ Group AB on October 25, 2024 and sell it today you would earn a total of 2,926 from holding AQ Group AB or generate 21.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 96.67% |
| Values | Daily Returns |
Walker Dunlop vs. AQ Group AB
Performance |
| Timeline |
| Walker Dunlop |
| AQ Group AB |
Walker Dunlop and AQ Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and AQ Group
The main advantage of trading using opposite Walker Dunlop and AQ Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, AQ Group 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 AQ Group will offset losses from the drop in AQ Group'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 |
| AQ Group vs. Inwido AB | AQ Group vs. Bufab Holding AB | AQ Group vs. Beijer Alma AB | AQ Group vs. Addtech AB |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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