Correlation Between Walker Dunlop and Bundamedik Tbk
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Bundamedik Tbk 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 Bundamedik Tbk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Bundamedik Tbk PT, you can compare the effects of market volatilities on Walker Dunlop and Bundamedik Tbk 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 Bundamedik Tbk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Bundamedik Tbk.
Diversification Opportunities for Walker Dunlop and Bundamedik Tbk
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Walker and Bundamedik is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Bundamedik Tbk PT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bundamedik Tbk PT 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 Bundamedik Tbk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bundamedik Tbk PT has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Bundamedik Tbk go up and down completely randomly.
Pair Corralation between Walker Dunlop and Bundamedik Tbk
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 1.08 times more return on investment than Bundamedik Tbk. However, Walker Dunlop is 1.08 times more volatile than Bundamedik Tbk PT. It trades about 0.04 of its potential returns per unit of risk. Bundamedik Tbk PT is currently generating about -0.04 per unit of risk. If you would invest 7,669 in Walker Dunlop on September 4, 2024 and sell it today you would earn a total of 3,352 from holding Walker Dunlop or generate 43.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.76% |
| Values | Daily Returns |
Walker Dunlop vs. Bundamedik Tbk PT
Performance |
| Timeline |
| Walker Dunlop |
| Bundamedik Tbk PT |
Walker Dunlop and Bundamedik Tbk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Bundamedik Tbk
The main advantage of trading using opposite Walker Dunlop and Bundamedik Tbk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Bundamedik Tbk 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 Bundamedik Tbk will offset losses from the drop in Bundamedik Tbk'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 |
| Bundamedik Tbk vs. Medikaloka Hermina PT | Bundamedik Tbk vs. Mitra Keluarga Karyasehat | Bundamedik Tbk vs. Mitra Pinasthika Mustika | Bundamedik Tbk vs. Jakarta Int Hotels |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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