Correlation Between Walker Dunlop and Cambiar Smid
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Cambiar Smid 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 Cambiar Smid into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Cambiar Smid Fund, you can compare the effects of market volatilities on Walker Dunlop and Cambiar Smid 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 Cambiar Smid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Cambiar Smid.
Diversification Opportunities for Walker Dunlop and Cambiar Smid
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Walker and Cambiar is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Cambiar Smid Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cambiar Smid 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 Cambiar Smid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cambiar Smid has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Cambiar Smid go up and down completely randomly.
Pair Corralation between Walker Dunlop and Cambiar Smid
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 1.43 times less return on investment than Cambiar Smid. In addition to that, Walker Dunlop is 2.06 times more volatile than Cambiar Smid Fund. It trades about 0.02 of its total potential returns per unit of risk. Cambiar Smid Fund is currently generating about 0.07 per unit of volatility. If you would invest 2,487 in Cambiar Smid Fund on August 26, 2024 and sell it today you would earn a total of 77.00 from holding Cambiar Smid Fund or generate 3.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walker Dunlop vs. Cambiar Smid Fund
Performance |
| Timeline |
| Walker Dunlop |
| Cambiar Smid |
Walker Dunlop and Cambiar Smid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Cambiar Smid
The main advantage of trading using opposite Walker Dunlop and Cambiar Smid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Cambiar Smid 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 Cambiar Smid will offset losses from the drop in Cambiar Smid'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 |
| Cambiar Smid vs. Abr 7525 Volatility | Cambiar Smid vs. Acm Dynamic Opportunity | Cambiar Smid vs. Western Asset Municipal | Cambiar Smid vs. Qs Large Cap |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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