Correlation Between Walker Dunlop and Brunel International
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Brunel International 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 Brunel International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Brunel International NV, you can compare the effects of market volatilities on Walker Dunlop and Brunel International 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 Brunel International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Brunel International.
Diversification Opportunities for Walker Dunlop and Brunel International
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Walker and Brunel is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Brunel International NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brunel International 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 Brunel International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brunel International has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Brunel International go up and down completely randomly.
Pair Corralation between Walker Dunlop and Brunel International
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 1.2 times more return on investment than Brunel International. However, Walker Dunlop is 1.2 times more volatile than Brunel International NV. It trades about 0.04 of its potential returns per unit of risk. Brunel International NV is currently generating about -0.21 per unit of risk. If you would invest 11,120 in Walker Dunlop on August 28, 2024 and sell it today you would earn a total of 129.00 from holding Walker Dunlop or generate 1.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walker Dunlop vs. Brunel International NV
Performance |
| Timeline |
| Walker Dunlop |
| Brunel International |
Walker Dunlop and Brunel International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Brunel International
The main advantage of trading using opposite Walker Dunlop and Brunel International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Brunel International 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 Brunel International will offset losses from the drop in Brunel International'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 |
| Brunel International vs. Koninklijke BAM Groep | Brunel International vs. TKH Group NV | Brunel International vs. Fugro NV | Brunel International vs. Aalberts Industries NV |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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