Correlation Between Walker Dunlop and Banyan Gold
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Banyan Gold 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 Banyan Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Banyan Gold Corp, you can compare the effects of market volatilities on Walker Dunlop and Banyan Gold 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 Banyan Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Banyan Gold.
Diversification Opportunities for Walker Dunlop and Banyan Gold
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Walker and Banyan is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Banyan Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banyan Gold 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 Banyan Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banyan Gold Corp has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Banyan Gold go up and down completely randomly.
Pair Corralation between Walker Dunlop and Banyan Gold
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 0.62 times more return on investment than Banyan Gold. However, Walker Dunlop is 1.62 times less risky than Banyan Gold. It trades about 0.05 of its potential returns per unit of risk. Banyan Gold Corp is currently generating about -0.02 per unit of risk. If you would invest 7,629 in Walker Dunlop on August 30, 2024 and sell it today you would earn a total of 3,453 from holding Walker Dunlop or generate 45.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Walker Dunlop vs. Banyan Gold Corp
Performance |
| Timeline |
| Walker Dunlop |
| Banyan Gold Corp |
Walker Dunlop and Banyan Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Banyan Gold
The main advantage of trading using opposite Walker Dunlop and Banyan Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Banyan Gold 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 Banyan Gold will offset losses from the drop in Banyan Gold'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 |
| Banyan Gold vs. Galway Metals | Banyan Gold vs. Rockhaven Resources | Banyan Gold vs. Cartier Resources | Banyan Gold vs. Maritime Resources Corp |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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