Correlation Between Walker Dunlop and Bactiquant
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Bactiquant 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 Bactiquant into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Bactiquant AS, you can compare the effects of market volatilities on Walker Dunlop and Bactiquant 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 Bactiquant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Bactiquant.
Diversification Opportunities for Walker Dunlop and Bactiquant
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Walker and Bactiquant is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Bactiquant AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bactiquant AS 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 Bactiquant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bactiquant AS has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Bactiquant go up and down completely randomly.
Pair Corralation between Walker Dunlop and Bactiquant
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 0.38 times more return on investment than Bactiquant. However, Walker Dunlop is 2.6 times less risky than Bactiquant. It trades about 0.05 of its potential returns per unit of risk. Bactiquant AS is currently generating about -0.1 per unit of risk. If you would invest 10,870 in Walker Dunlop on September 1, 2024 and sell it today you would earn a total of 148.00 from holding Walker Dunlop or generate 1.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Walker Dunlop vs. Bactiquant AS
Performance |
| Timeline |
| Walker Dunlop |
| Bactiquant AS |
Walker Dunlop and Bactiquant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Bactiquant
The main advantage of trading using opposite Walker Dunlop and Bactiquant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Bactiquant 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 Bactiquant will offset losses from the drop in Bactiquant'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 |
| Bactiquant vs. Sparinvest INDEX Globale | Bactiquant vs. Bavarian Nordic | Bactiquant vs. Investeringsselskabet Luxor AS | Bactiquant vs. cBrain AS |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |