Correlation Between Walker Dunlop and Saba Capital
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Saba Capital 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 Saba Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Saba Capital Income, you can compare the effects of market volatilities on Walker Dunlop and Saba Capital 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 Saba Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Saba Capital.
Diversification Opportunities for Walker Dunlop and Saba Capital
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Walker and Saba is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Saba Capital Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saba Capital Income 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 Saba Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saba Capital Income has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Saba Capital go up and down completely randomly.
Pair Corralation between Walker Dunlop and Saba Capital
Allowing for the 90-day total investment horizon Walker Dunlop is expected to under-perform the Saba Capital. In addition to that, Walker Dunlop is 4.34 times more volatile than Saba Capital Income. It trades about -0.02 of its total potential returns per unit of risk. Saba Capital Income is currently generating about 0.7 per unit of volatility. If you would invest 742.00 in Saba Capital Income on August 31, 2024 and sell it today you would earn a total of 42.00 from holding Saba Capital Income or generate 5.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Walker Dunlop vs. Saba Capital Income
Performance |
| Timeline |
| Walker Dunlop |
| Saba Capital Income |
Walker Dunlop and Saba Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Saba Capital
The main advantage of trading using opposite Walker Dunlop and Saba Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Saba Capital 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 Saba Capital will offset losses from the drop in Saba Capital'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 |
| Saba Capital vs. Eaton Vance National | Saba Capital vs. Invesco High Income | Saba Capital vs. Blackrock Muniholdings Ny | Saba Capital vs. Nuveen California Select |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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