Correlation Between Walker Dunlop and PT Bank
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and PT Bank 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 PT Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and PT Bank Bisnis, you can compare the effects of market volatilities on Walker Dunlop and PT Bank 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 PT Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and PT Bank.
Diversification Opportunities for Walker Dunlop and PT Bank
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Walker and BBSI is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and PT Bank Bisnis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Bank Bisnis 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 PT Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Bank Bisnis has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and PT Bank go up and down completely randomly.
Pair Corralation between Walker Dunlop and PT Bank
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 1.06 times more return on investment than PT Bank. However, Walker Dunlop is 1.06 times more volatile than PT Bank Bisnis. It trades about -0.01 of its potential returns per unit of risk. PT Bank Bisnis is currently generating about -0.01 per unit of risk. If you would invest 11,120 in Walker Dunlop on August 29, 2024 and sell it today you would lose (64.00) from holding Walker Dunlop or give up 0.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walker Dunlop vs. PT Bank Bisnis
Performance |
| Timeline |
| Walker Dunlop |
| PT Bank Bisnis |
Walker Dunlop and PT Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and PT Bank
The main advantage of trading using opposite Walker Dunlop and PT Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, PT Bank 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 PT Bank will offset losses from the drop in PT Bank'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 |
| PT Bank vs. Bk Harda Internasional | PT Bank vs. Bank Yudha Bhakti | PT Bank vs. Bank Net Indonesia | PT Bank vs. Bank Amar Indonesia |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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