Correlation Between Walker Dunlop and Bank Makramah
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Bank Makramah 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 Bank Makramah into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Bank Makramah, you can compare the effects of market volatilities on Walker Dunlop and Bank Makramah 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 Bank Makramah. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Bank Makramah.
Diversification Opportunities for Walker Dunlop and Bank Makramah
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Walker and Bank is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Bank Makramah in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Makramah 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 Bank Makramah. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Makramah has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Bank Makramah go up and down completely randomly.
Pair Corralation between Walker Dunlop and Bank Makramah
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 1.4 times less return on investment than Bank Makramah. But when comparing it to its historical volatility, Walker Dunlop is 1.58 times less risky than Bank Makramah. It trades about 0.05 of its potential returns per unit of risk. Bank Makramah is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 219.00 in Bank Makramah on August 30, 2024 and sell it today you would earn a total of 49.00 from holding Bank Makramah or generate 22.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 50.0% |
| Values | Daily Returns |
Walker Dunlop vs. Bank Makramah
Performance |
| Timeline |
| Walker Dunlop |
| Bank Makramah |
Walker Dunlop and Bank Makramah Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Bank Makramah
The main advantage of trading using opposite Walker Dunlop and Bank Makramah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Bank Makramah 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 Bank Makramah will offset losses from the drop in Bank Makramah's long position.| Walker Dunlop vs. Velocity Financial Llc | Walker Dunlop vs. Security National Financial | Walker Dunlop vs. Encore Capital Group | Walker Dunlop vs. PennyMac Finl Svcs |
| Bank Makramah vs. Quice Food Industries | Bank Makramah vs. Hi Tech Lubricants | Bank Makramah vs. Wah Nobel Chemicals | Bank Makramah vs. Sardar Chemical Industries |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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