Correlation Between Walker Dunlop and Calvert Capital
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Calvert Capital 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 Calvert Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Calvert Capital Accumulation, you can compare the effects of market volatilities on Walker Dunlop and Calvert Capital 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 Calvert Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Calvert Capital.
Diversification Opportunities for Walker Dunlop and Calvert Capital
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Walker and Calvert is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Calvert Capital Accumulation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Capital Accu 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 Calvert Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Capital Accu has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Calvert Capital go up and down completely randomly.
Pair Corralation between Walker Dunlop and Calvert Capital
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 2.55 times more return on investment than Calvert Capital. However, Walker Dunlop is 2.55 times more volatile than Calvert Capital Accumulation. It trades about 0.04 of its potential returns per unit of risk. Calvert Capital Accumulation is currently generating about 0.06 per unit of risk. If you would invest 8,063 in Walker Dunlop on August 25, 2024 and sell it today you would earn a total of 2,786 from holding Walker Dunlop or generate 34.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walker Dunlop vs. Calvert Capital Accumulation
Performance |
| Timeline |
| Walker Dunlop |
| Calvert Capital Accu |
Walker Dunlop and Calvert Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Calvert Capital
The main advantage of trading using opposite Walker Dunlop and Calvert Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Calvert Capital 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 Calvert Capital will offset losses from the drop in Calvert Capital'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 |
| Calvert Capital vs. Calvert Equity Portfolio | Calvert Capital vs. Calvert Large Cap | Calvert Capital vs. Calvert Bond Portfolio | Calvert Capital vs. Calvert International Equity |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| 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 | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |