Correlation Between Walker Dunlop and Astra International
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Astra International 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 Astra International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Astra International Tbk, you can compare the effects of market volatilities on Walker Dunlop and Astra International 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 Astra International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Astra International.
Diversification Opportunities for Walker Dunlop and Astra International
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Walker and Astra is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Astra International Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astra International Tbk 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 Astra International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astra International Tbk has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Astra International go up and down completely randomly.
Pair Corralation between Walker Dunlop and Astra International
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 1.05 times more return on investment than Astra International. However, Walker Dunlop is 1.05 times more volatile than Astra International Tbk. It trades about 0.04 of its potential returns per unit of risk. Astra International Tbk is currently generating about -0.08 per unit of risk. If you would invest 11,120 in Walker Dunlop on August 28, 2024 and sell it today you would earn a total of 129.00 from holding Walker Dunlop or generate 1.16% 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. Astra International Tbk
Performance |
| Timeline |
| Walker Dunlop |
| Astra International Tbk |
Walker Dunlop and Astra International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Astra International
The main advantage of trading using opposite Walker Dunlop and Astra International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Astra International 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 Astra International will offset losses from the drop in Astra International'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 |
| Astra International vs. Telkom Indonesia Tbk | Astra International vs. Bank Mandiri Persero | Astra International vs. Bank Central Asia | Astra International vs. PT Indofood Sukses |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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