Correlation Between Walker Dunlop and Austevoll Seafood
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Austevoll Seafood 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 Austevoll Seafood into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Austevoll Seafood ASA, you can compare the effects of market volatilities on Walker Dunlop and Austevoll Seafood 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 Austevoll Seafood. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Austevoll Seafood.
Diversification Opportunities for Walker Dunlop and Austevoll Seafood
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Walker and Austevoll is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Austevoll Seafood ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Austevoll Seafood ASA 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 Austevoll Seafood. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Austevoll Seafood ASA has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Austevoll Seafood go up and down completely randomly.
Pair Corralation between Walker Dunlop and Austevoll Seafood
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 6.24 times less return on investment than Austevoll Seafood. In addition to that, Walker Dunlop is 1.33 times more volatile than Austevoll Seafood ASA. It trades about 0.02 of its total potential returns per unit of risk. Austevoll Seafood ASA is currently generating about 0.13 per unit of volatility. If you would invest 7,220 in Austevoll Seafood ASA on November 5, 2024 and sell it today you would earn a total of 3,840 from holding Austevoll Seafood ASA or generate 53.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.59% |
| Values | Daily Returns |
Walker Dunlop vs. Austevoll Seafood ASA
Performance |
| Timeline |
| Walker Dunlop |
| Austevoll Seafood ASA |
Walker Dunlop and Austevoll Seafood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Austevoll Seafood
The main advantage of trading using opposite Walker Dunlop and Austevoll Seafood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Austevoll Seafood 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 Austevoll Seafood will offset losses from the drop in Austevoll Seafood'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 |
| Austevoll Seafood vs. Lery Seafood Group | Austevoll Seafood vs. Grieg Seafood ASA | Austevoll Seafood vs. SalMar ASA | Austevoll Seafood vs. Pf Bakkafrost |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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