Correlation Between Walker Dunlop and Aristotle Funds
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Aristotle Funds 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 Aristotle Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Aristotle Funds Series, you can compare the effects of market volatilities on Walker Dunlop and Aristotle Funds 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 Aristotle Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Aristotle Funds.
Diversification Opportunities for Walker Dunlop and Aristotle Funds
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Walker and Aristotle is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Aristotle Funds Series in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aristotle Funds Series 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 Aristotle Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aristotle Funds Series has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Aristotle Funds go up and down completely randomly.
Pair Corralation between Walker Dunlop and Aristotle Funds
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 1.01 times less return on investment than Aristotle Funds. In addition to that, Walker Dunlop is 2.51 times more volatile than Aristotle Funds Series. It trades about 0.05 of its total potential returns per unit of risk. Aristotle Funds Series is currently generating about 0.11 per unit of volatility. If you would invest 997.00 in Aristotle Funds Series on August 30, 2024 and sell it today you would earn a total of 485.00 from holding Aristotle Funds Series or generate 48.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 82.63% |
| Values | Daily Returns |
Walker Dunlop vs. Aristotle Funds Series
Performance |
| Timeline |
| Walker Dunlop |
| Aristotle Funds Series |
Walker Dunlop and Aristotle Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Aristotle Funds
The main advantage of trading using opposite Walker Dunlop and Aristotle Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Aristotle Funds 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 Aristotle Funds will offset losses from the drop in Aristotle Funds' 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 |
| Aristotle Funds vs. Growth Fund Of | Aristotle Funds vs. HUMANA INC | Aristotle Funds vs. Aquagold International | Aristotle Funds vs. Barloworld Ltd ADR |
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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