Correlation Between Walker Dunlop and CDN Maverick
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and CDN Maverick 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 CDN Maverick into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and CDN Maverick Capital, you can compare the effects of market volatilities on Walker Dunlop and CDN Maverick 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 CDN Maverick. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and CDN Maverick.
Diversification Opportunities for Walker Dunlop and CDN Maverick
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Walker and CDN is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and CDN Maverick Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CDN Maverick Capital 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 CDN Maverick. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CDN Maverick Capital has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and CDN Maverick go up and down completely randomly.
Pair Corralation between Walker Dunlop and CDN Maverick
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 1.7 times less return on investment than CDN Maverick. But when comparing it to its historical volatility, Walker Dunlop is 3.31 times less risky than CDN Maverick. It trades about 0.08 of its potential returns per unit of risk. CDN Maverick Capital is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 10.00 in CDN Maverick Capital on September 1, 2024 and sell it today you would earn a total of 1.00 from holding CDN Maverick Capital or generate 10.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Walker Dunlop vs. CDN Maverick Capital
Performance |
| Timeline |
| Walker Dunlop |
| CDN Maverick Capital |
Walker Dunlop and CDN Maverick Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and CDN Maverick
The main advantage of trading using opposite Walker Dunlop and CDN Maverick positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, CDN Maverick 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 CDN Maverick will offset losses from the drop in CDN Maverick'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 |
| CDN Maverick vs. Aurelia Metals Limited | CDN Maverick vs. Artemis Resources | CDN Maverick vs. Ascendant Resources | CDN Maverick vs. Azimut Exploration |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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