Correlation Between Walker Dunlop and BankInvest Optima
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and BankInvest Optima 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 BankInvest Optima into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and BankInvest Optima 30, you can compare the effects of market volatilities on Walker Dunlop and BankInvest Optima 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 BankInvest Optima. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and BankInvest Optima.
Diversification Opportunities for Walker Dunlop and BankInvest Optima
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Walker and BankInvest is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and BankInvest Optima 30 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BankInvest Optima 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 BankInvest Optima. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BankInvest Optima has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and BankInvest Optima go up and down completely randomly.
Pair Corralation between Walker Dunlop and BankInvest Optima
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 5.71 times more return on investment than BankInvest Optima. However, Walker Dunlop is 5.71 times more volatile than BankInvest Optima 30. It trades about 0.04 of its potential returns per unit of risk. BankInvest Optima 30 is currently generating about 0.1 per unit of risk. If you would invest 7,861 in Walker Dunlop on August 29, 2024 and sell it today you would earn a total of 3,195 from holding Walker Dunlop or generate 40.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.16% |
| Values | Daily Returns |
Walker Dunlop vs. BankInvest Optima 30
Performance |
| Timeline |
| Walker Dunlop |
| BankInvest Optima |
Walker Dunlop and BankInvest Optima Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and BankInvest Optima
The main advantage of trading using opposite Walker Dunlop and BankInvest Optima positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, BankInvest Optima 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 BankInvest Optima will offset losses from the drop in BankInvest Optima'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 |
| BankInvest Optima vs. Ringkjoebing Landbobank AS | BankInvest Optima vs. Vestjysk Bank AS | BankInvest Optima vs. Sydbank AS | BankInvest Optima vs. Carnegie Wealth Management |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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