Correlation Between Walker Dunlop and Barings Global
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Barings Global 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 Barings Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Barings Global Floating, you can compare the effects of market volatilities on Walker Dunlop and Barings Global 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 Barings Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Barings Global.
Diversification Opportunities for Walker Dunlop and Barings Global
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Walker and Barings is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Barings Global Floating in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barings Global Floating 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 Barings Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barings Global Floating has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Barings Global go up and down completely randomly.
Pair Corralation between Walker Dunlop and Barings Global
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 11.97 times more return on investment than Barings Global. However, Walker Dunlop is 11.97 times more volatile than Barings Global Floating. It trades about 0.05 of its potential returns per unit of risk. Barings Global Floating is currently generating about 0.19 per unit of risk. If you would invest 9,413 in Walker Dunlop on August 28, 2024 and sell it today you would earn a total of 1,836 from holding Walker Dunlop or generate 19.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.52% |
| Values | Daily Returns |
Walker Dunlop vs. Barings Global Floating
Performance |
| Timeline |
| Walker Dunlop |
| Barings Global Floating |
Walker Dunlop and Barings Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Barings Global
The main advantage of trading using opposite Walker Dunlop and Barings Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Barings Global 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 Barings Global will offset losses from the drop in Barings Global'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 |
| Barings Global vs. Barings Active Short | Barings Global vs. Barings Emerging Markets | Barings Global vs. Barings Emerging Markets | Barings Global vs. Barings Active Short |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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