Correlation Between Walker Dunlop and Bank Tabungan
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Bank Tabungan 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 Tabungan 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 Tabungan Pensiunan, you can compare the effects of market volatilities on Walker Dunlop and Bank Tabungan 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 Tabungan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Bank Tabungan.
Diversification Opportunities for Walker Dunlop and Bank Tabungan
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Walker and Bank is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Bank Tabungan Pensiunan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Tabungan Pensiunan 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 Tabungan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Tabungan Pensiunan has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Bank Tabungan go up and down completely randomly.
Pair Corralation between Walker Dunlop and Bank Tabungan
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 0.79 times more return on investment than Bank Tabungan. However, Walker Dunlop is 1.26 times less risky than Bank Tabungan. It trades about 0.06 of its potential returns per unit of risk. Bank Tabungan Pensiunan is currently generating about -0.08 per unit of risk. If you would invest 8,835 in Walker Dunlop on August 29, 2024 and sell it today you would earn a total of 2,221 from holding Walker Dunlop or generate 25.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.38% |
| Values | Daily Returns |
Walker Dunlop vs. Bank Tabungan Pensiunan
Performance |
| Timeline |
| Walker Dunlop |
| Bank Tabungan Pensiunan |
Walker Dunlop and Bank Tabungan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Bank Tabungan
The main advantage of trading using opposite Walker Dunlop and Bank Tabungan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Bank Tabungan 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 Tabungan will offset losses from the drop in Bank Tabungan'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 |
| Bank Tabungan vs. Bank BRISyariah Tbk | Bank Tabungan vs. Ace Hardware Indonesia | Bank Tabungan vs. Merdeka Copper Gold | Bank Tabungan vs. Erajaya Swasembada Tbk |
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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