Correlation Between Walker Dunlop and Bengal Energy
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Bengal Energy 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 Bengal Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Bengal Energy, you can compare the effects of market volatilities on Walker Dunlop and Bengal Energy 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 Bengal Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Bengal Energy.
Diversification Opportunities for Walker Dunlop and Bengal Energy
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Walker and Bengal is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Bengal Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bengal Energy 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 Bengal Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bengal Energy has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Bengal Energy go up and down completely randomly.
Pair Corralation between Walker Dunlop and Bengal Energy
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 0.33 times more return on investment than Bengal Energy. However, Walker Dunlop is 3.02 times less risky than Bengal Energy. It trades about 0.04 of its potential returns per unit of risk. Bengal Energy is currently generating about -0.04 per unit of risk. If you would invest 8,063 in Walker Dunlop on August 25, 2024 and sell it today you would earn a total of 2,786 from holding Walker Dunlop or generate 34.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Walker Dunlop vs. Bengal Energy
Performance |
| Timeline |
| Walker Dunlop |
| Bengal Energy |
Walker Dunlop and Bengal Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Bengal Energy
The main advantage of trading using opposite Walker Dunlop and Bengal Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Bengal Energy 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 Bengal Energy will offset losses from the drop in Bengal Energy'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 |
| Bengal Energy vs. Petroleo Brasileiro Petrobras | Bengal Energy vs. Equinor ASA ADR | Bengal Energy vs. Eni SpA ADR | Bengal Energy vs. YPF Sociedad Anonima |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |