Correlation Between Walker Dunlop and Baytex Energy
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Baytex 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 Baytex 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 Baytex Energy Corp, you can compare the effects of market volatilities on Walker Dunlop and Baytex 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 Baytex Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Baytex Energy.
Diversification Opportunities for Walker Dunlop and Baytex Energy
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Walker and Baytex is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Baytex Energy Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baytex Energy Corp 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 Baytex Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baytex Energy Corp has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Baytex Energy go up and down completely randomly.
Pair Corralation between Walker Dunlop and Baytex Energy
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 0.82 times more return on investment than Baytex Energy. However, Walker Dunlop is 1.22 times less risky than Baytex Energy. It trades about 0.03 of its potential returns per unit of risk. Baytex Energy Corp is currently generating about -0.02 per unit of risk. If you would invest 8,189 in Walker Dunlop on November 9, 2024 and sell it today you would earn a total of 1,384 from holding Walker Dunlop or generate 16.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Walker Dunlop vs. Baytex Energy Corp
Performance |
| Timeline |
| Walker Dunlop |
| Baytex Energy Corp |
Walker Dunlop and Baytex Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Baytex Energy
The main advantage of trading using opposite Walker Dunlop and Baytex Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Baytex 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 Baytex Energy will offset losses from the drop in Baytex 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 |
| Baytex Energy vs. MEG Energy Corp | Baytex Energy vs. Whitecap Resources | Baytex Energy vs. Athabasca Oil Corp | Baytex Energy vs. Cenovus Energy |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |