Correlation Between Walker Dunlop and Equitable Holdings
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Equitable Holdings 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 Equitable Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Equitable Holdings, you can compare the effects of market volatilities on Walker Dunlop and Equitable Holdings 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 Equitable Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Equitable Holdings.
Diversification Opportunities for Walker Dunlop and Equitable Holdings
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Walker and Equitable is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Equitable Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Equitable Holdings 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 Equitable Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Equitable Holdings has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Equitable Holdings go up and down completely randomly.
Pair Corralation between Walker Dunlop and Equitable Holdings
Allowing for the 90-day total investment horizon Walker Dunlop is expected to under-perform the Equitable Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Walker Dunlop is 1.02 times less risky than Equitable Holdings. The stock trades about -0.42 of its potential returns per unit of risk. The Equitable Holdings is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 4,960 in Equitable Holdings on November 27, 2024 and sell it today you would lose (120.00) from holding Equitable Holdings or give up 2.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
Walker Dunlop vs. Equitable Holdings
Performance |
| Timeline |
| Walker Dunlop |
| Equitable Holdings |
Walker Dunlop and Equitable Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Equitable Holdings
The main advantage of trading using opposite Walker Dunlop and Equitable Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Equitable Holdings 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 Equitable Holdings will offset losses from the drop in Equitable Holdings' 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 |
| Equitable Holdings vs. Waste Management | Equitable Holdings vs. OFFICE DEPOT | Equitable Holdings vs. CITY OFFICE REIT | Equitable Holdings vs. Cleanaway Waste Management |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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