Correlation Between Walker Dunlop and Camil Alimentos
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Camil Alimentos 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 Camil Alimentos into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Camil Alimentos SA, you can compare the effects of market volatilities on Walker Dunlop and Camil Alimentos 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 Camil Alimentos. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Camil Alimentos.
Diversification Opportunities for Walker Dunlop and Camil Alimentos
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Walker and Camil is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Camil Alimentos SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Camil Alimentos SA 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 Camil Alimentos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Camil Alimentos SA has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Camil Alimentos go up and down completely randomly.
Pair Corralation between Walker Dunlop and Camil Alimentos
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 0.8 times more return on investment than Camil Alimentos. However, Walker Dunlop is 1.25 times less risky than Camil Alimentos. It trades about 0.05 of its potential returns per unit of risk. Camil Alimentos SA is currently generating about -0.28 per unit of risk. If you would invest 10,870 in Walker Dunlop on September 1, 2024 and sell it today you would earn a total of 148.00 from holding Walker Dunlop or generate 1.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Walker Dunlop vs. Camil Alimentos SA
Performance |
| Timeline |
| Walker Dunlop |
| Camil Alimentos SA |
Walker Dunlop and Camil Alimentos Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Camil Alimentos
The main advantage of trading using opposite Walker Dunlop and Camil Alimentos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Camil Alimentos 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 Camil Alimentos will offset losses from the drop in Camil Alimentos' 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 |
| Camil Alimentos vs. Companhia Siderrgica Nacional | Camil Alimentos vs. Cyrela Brazil Realty | Camil Alimentos vs. Fras le SA | Camil Alimentos vs. Energisa SA |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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