Correlation Between Walker Dunlop and CIB Marine
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and CIB Marine 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 CIB Marine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and CIB Marine Bancshares, you can compare the effects of market volatilities on Walker Dunlop and CIB Marine 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 CIB Marine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and CIB Marine.
Diversification Opportunities for Walker Dunlop and CIB Marine
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Walker and CIB is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and CIB Marine Bancshares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIB Marine Bancshares 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 CIB Marine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CIB Marine Bancshares has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and CIB Marine go up and down completely randomly.
Pair Corralation between Walker Dunlop and CIB Marine
Allowing for the 90-day total investment horizon Walker Dunlop is expected to under-perform the CIB Marine. But the stock apears to be less risky and, when comparing its historical volatility, Walker Dunlop is 1.1 times less risky than CIB Marine. The stock trades about 0.0 of its potential returns per unit of risk. The CIB Marine Bancshares is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 2,753 in CIB Marine Bancshares on August 30, 2024 and sell it today you would earn a total of 47.00 from holding CIB Marine Bancshares or generate 1.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Walker Dunlop vs. CIB Marine Bancshares
Performance |
| Timeline |
| Walker Dunlop |
| CIB Marine Bancshares |
Walker Dunlop and CIB Marine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and CIB Marine
The main advantage of trading using opposite Walker Dunlop and CIB Marine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, CIB Marine 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 CIB Marine will offset losses from the drop in CIB Marine's long position.| Walker Dunlop vs. Velocity Financial Llc | Walker Dunlop vs. Security National Financial | Walker Dunlop vs. Encore Capital Group | Walker Dunlop vs. PennyMac Finl Svcs |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |