Correlation Between Walker Dunlop and Aurskog Sparebank
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Aurskog Sparebank 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 Aurskog Sparebank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Aurskog Sparebank, you can compare the effects of market volatilities on Walker Dunlop and Aurskog Sparebank 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 Aurskog Sparebank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Aurskog Sparebank.
Diversification Opportunities for Walker Dunlop and Aurskog Sparebank
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Walker and Aurskog is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Aurskog Sparebank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aurskog Sparebank 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 Aurskog Sparebank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aurskog Sparebank has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Aurskog Sparebank go up and down completely randomly.
Pair Corralation between Walker Dunlop and Aurskog Sparebank
Allowing for the 90-day total investment horizon Walker Dunlop is expected to under-perform the Aurskog Sparebank. In addition to that, Walker Dunlop is 1.4 times more volatile than Aurskog Sparebank. It trades about -0.01 of its total potential returns per unit of risk. Aurskog Sparebank is currently generating about 0.06 per unit of volatility. If you would invest 23,300 in Aurskog Sparebank on August 29, 2024 and sell it today you would earn a total of 295.00 from holding Aurskog Sparebank or generate 1.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walker Dunlop vs. Aurskog Sparebank
Performance |
| Timeline |
| Walker Dunlop |
| Aurskog Sparebank |
Walker Dunlop and Aurskog Sparebank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Aurskog Sparebank
The main advantage of trading using opposite Walker Dunlop and Aurskog Sparebank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Aurskog Sparebank 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 Aurskog Sparebank will offset losses from the drop in Aurskog Sparebank'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 |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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