Correlation Between Walker Dunlop and JP Morgan
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and JP Morgan 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 JP Morgan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and JP Morgan Exchange, you can compare the effects of market volatilities on Walker Dunlop and JP Morgan 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 JP Morgan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and JP Morgan.
Diversification Opportunities for Walker Dunlop and JP Morgan
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Walker and BBLB is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and JP Morgan Exchange in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JP Morgan Exchange 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 JP Morgan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JP Morgan Exchange has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and JP Morgan go up and down completely randomly.
Pair Corralation between Walker Dunlop and JP Morgan
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 2.21 times more return on investment than JP Morgan. However, Walker Dunlop is 2.21 times more volatile than JP Morgan Exchange. It trades about 0.04 of its potential returns per unit of risk. JP Morgan Exchange is currently generating about -0.02 per unit of risk. If you would invest 8,063 in Walker Dunlop on August 25, 2024 and sell it today you would earn a total of 2,786 from holding Walker Dunlop or generate 34.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 81.29% |
| Values | Daily Returns |
Walker Dunlop vs. JP Morgan Exchange
Performance |
| Timeline |
| Walker Dunlop |
| JP Morgan Exchange |
Walker Dunlop and JP Morgan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and JP Morgan
The main advantage of trading using opposite Walker Dunlop and JP Morgan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, JP Morgan 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 JP Morgan will offset losses from the drop in JP Morgan'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 |
| JP Morgan vs. Global X Funds | JP Morgan vs. US Treasury 12 | JP Morgan vs. Tidal Trust II | JP Morgan vs. Franklin Liberty Treasury |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |