Correlation Between Walker Dunlop and Six Circles
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Six Circles 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 Six Circles into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Six Circles International, you can compare the effects of market volatilities on Walker Dunlop and Six Circles 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 Six Circles. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Six Circles.
Diversification Opportunities for Walker Dunlop and Six Circles
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Walker and Six is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Six Circles International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Six Circles International 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 Six Circles. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Six Circles International has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Six Circles go up and down completely randomly.
Pair Corralation between Walker Dunlop and Six Circles
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 1.78 times more return on investment than Six Circles. However, Walker Dunlop is 1.78 times more volatile than Six Circles International. It trades about -0.01 of its potential returns per unit of risk. Six Circles International is currently generating about -0.29 per unit of risk. If you would invest 11,120 in Walker Dunlop on August 29, 2024 and sell it today you would lose (64.00) from holding Walker Dunlop or give up 0.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walker Dunlop vs. Six Circles International
Performance |
| Timeline |
| Walker Dunlop |
| Six Circles International |
Walker Dunlop and Six Circles Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Six Circles
The main advantage of trading using opposite Walker Dunlop and Six Circles positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Six Circles 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 Six Circles will offset losses from the drop in Six Circles' 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 |
| Six Circles vs. Six Circles Ultra | Six Circles vs. Six Circles Tax | Six Circles vs. Six Circles Unconstrained | Six Circles vs. Six Circles Global |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Stocks Directory Find actively traded stocks across global markets | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| 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 | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |