Correlation Between Walker Dunlop and ANTA Sports
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and ANTA Sports 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 ANTA Sports into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and ANTA Sports Products, you can compare the effects of market volatilities on Walker Dunlop and ANTA Sports 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 ANTA Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and ANTA Sports.
Diversification Opportunities for Walker Dunlop and ANTA Sports
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Walker and ANTA is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and ANTA Sports Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANTA Sports Products 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 ANTA Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANTA Sports Products has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and ANTA Sports go up and down completely randomly.
Pair Corralation between Walker Dunlop and ANTA Sports
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 1.85 times less return on investment than ANTA Sports. But when comparing it to its historical volatility, Walker Dunlop is 1.3 times less risky than ANTA Sports. It trades about 0.02 of its potential returns per unit of risk. ANTA Sports Products is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 854.00 in ANTA Sports Products on November 1, 2024 and sell it today you would earn a total of 144.00 from holding ANTA Sports Products or generate 16.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.6% |
| Values | Daily Returns |
Walker Dunlop vs. ANTA Sports Products
Performance |
| Timeline |
| Walker Dunlop |
| ANTA Sports Products |
Walker Dunlop and ANTA Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and ANTA Sports
The main advantage of trading using opposite Walker Dunlop and ANTA Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, ANTA Sports 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 ANTA Sports will offset losses from the drop in ANTA Sports' long position.| Walker Dunlop vs. Guild Holdings Co | Walker Dunlop vs. Security National Financial | Walker Dunlop vs. Encore Capital Group |
| ANTA Sports vs. Molina Healthcare | ANTA Sports vs. CARDINAL HEALTH | ANTA Sports vs. CLOVER HEALTH INV | ANTA Sports vs. BJs Restaurants |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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