Correlation Between Walker Dunlop and CCL Industries
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and CCL Industries 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 CCL Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and CCL Industries, you can compare the effects of market volatilities on Walker Dunlop and CCL Industries 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 CCL Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and CCL Industries.
Diversification Opportunities for Walker Dunlop and CCL Industries
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Walker and CCL is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and CCL Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CCL Industries 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 CCL Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CCL Industries has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and CCL Industries go up and down completely randomly.
Pair Corralation between Walker Dunlop and CCL Industries
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 1.15 times more return on investment than CCL Industries. However, Walker Dunlop is 1.15 times more volatile than CCL Industries. It trades about 0.0 of its potential returns per unit of risk. CCL Industries is currently generating about -0.28 per unit of risk. If you would invest 11,127 in Walker Dunlop on August 30, 2024 and sell it today you would lose (45.00) from holding Walker Dunlop or give up 0.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walker Dunlop vs. CCL Industries
Performance |
| Timeline |
| Walker Dunlop |
| CCL Industries |
Walker Dunlop and CCL Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and CCL Industries
The main advantage of trading using opposite Walker Dunlop and CCL Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, CCL Industries 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 CCL Industries will offset losses from the drop in CCL Industries' 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 |
| CCL Industries vs. Myers Industries | CCL Industries vs. Silgan Holdings | CCL Industries vs. Pactiv Evergreen | CCL Industries vs. Reynolds Consumer Products |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |