Correlation Between Walker Dunlop and AXA World
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and AXA World 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 AXA World into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and AXA World Funds, you can compare the effects of market volatilities on Walker Dunlop and AXA World 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 AXA World. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and AXA World.
Diversification Opportunities for Walker Dunlop and AXA World
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Walker and AXA is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and AXA World Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AXA World Funds 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 AXA World. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AXA World Funds has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and AXA World go up and down completely randomly.
Pair Corralation between Walker Dunlop and AXA World
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 3.24 times more return on investment than AXA World. However, Walker Dunlop is 3.24 times more volatile than AXA World Funds. It trades about 0.06 of its potential returns per unit of risk. AXA World Funds is currently generating about -0.01 per unit of risk. If you would invest 9,181 in Walker Dunlop on September 1, 2024 and sell it today you would earn a total of 1,837 from holding Walker Dunlop or generate 20.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.47% |
| Values | Daily Returns |
Walker Dunlop vs. AXA World Funds
Performance |
| Timeline |
| Walker Dunlop |
| AXA World Funds |
Walker Dunlop and AXA World Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and AXA World
The main advantage of trading using opposite Walker Dunlop and AXA World positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, AXA World 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 AXA World will offset losses from the drop in AXA World'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 |
| AXA World vs. AXA World Funds | AXA World vs. Esfera Robotics R | AXA World vs. R co Valor F | AXA World vs. CM AM Monplus NE |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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