Correlation Between Walker Dunlop and Calamos High
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Calamos High 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 Calamos High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Calamos High Income, you can compare the effects of market volatilities on Walker Dunlop and Calamos High 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 Calamos High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Calamos High.
Diversification Opportunities for Walker Dunlop and Calamos High
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Walker and Calamos is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Calamos High Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calamos High Income 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 Calamos High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calamos High Income has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Calamos High go up and down completely randomly.
Pair Corralation between Walker Dunlop and Calamos High
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 10.95 times more return on investment than Calamos High. However, Walker Dunlop is 10.95 times more volatile than Calamos High Income. It trades about 0.11 of its potential returns per unit of risk. Calamos High Income is currently generating about 0.29 per unit of risk. If you would invest 6,266 in Walker Dunlop on August 26, 2024 and sell it today you would earn a total of 4,583 from holding Walker Dunlop or generate 73.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walker Dunlop vs. Calamos High Income
Performance |
| Timeline |
| Walker Dunlop |
| Calamos High Income |
Walker Dunlop and Calamos High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Calamos High
The main advantage of trading using opposite Walker Dunlop and Calamos High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Calamos High 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 Calamos High will offset losses from the drop in Calamos High'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 |
| Calamos High vs. Invesco Government Fund | Calamos High vs. Franklin Adjustable Government | Calamos High vs. Short Term Government Fund | Calamos High vs. Lord Abbett Government |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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