Correlation Between Walker Dunlop and BeWhere Holdings
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and BeWhere 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 BeWhere 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 BeWhere Holdings, you can compare the effects of market volatilities on Walker Dunlop and BeWhere 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 BeWhere Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and BeWhere Holdings.
Diversification Opportunities for Walker Dunlop and BeWhere Holdings
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Walker and BeWhere is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and BeWhere Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BeWhere 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 BeWhere Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BeWhere Holdings has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and BeWhere Holdings go up and down completely randomly.
Pair Corralation between Walker Dunlop and BeWhere Holdings
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 2.63 times less return on investment than BeWhere Holdings. But when comparing it to its historical volatility, Walker Dunlop is 2.28 times less risky than BeWhere Holdings. It trades about 0.09 of its potential returns per unit of risk. BeWhere Holdings is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 19.00 in BeWhere Holdings on September 1, 2024 and sell it today you would earn a total of 32.00 from holding BeWhere Holdings or generate 168.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walker Dunlop vs. BeWhere Holdings
Performance |
| Timeline |
| Walker Dunlop |
| BeWhere Holdings |
Walker Dunlop and BeWhere Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and BeWhere Holdings
The main advantage of trading using opposite Walker Dunlop and BeWhere Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, BeWhere 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 BeWhere Holdings will offset losses from the drop in BeWhere 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 |
| BeWhere Holdings vs. Baylin Technologies | BeWhere Holdings vs. Viavi Solutions | BeWhere Holdings vs. SatixFy Communications | BeWhere Holdings vs. Electronic Systems Technology |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |