Correlation Between Walker Dunlop and Citizens Holding
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Citizens Holding 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 Citizens Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Citizens Holding, you can compare the effects of market volatilities on Walker Dunlop and Citizens Holding 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 Citizens Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Citizens Holding.
Diversification Opportunities for Walker Dunlop and Citizens Holding
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Walker and Citizens is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Citizens Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citizens Holding 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 Citizens Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citizens Holding has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Citizens Holding go up and down completely randomly.
Pair Corralation between Walker Dunlop and Citizens Holding
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 1.65 times more return on investment than Citizens Holding. However, Walker Dunlop is 1.65 times more volatile than Citizens Holding. It trades about 0.07 of its potential returns per unit of risk. Citizens Holding is currently generating about -0.02 per unit of risk. If you would invest 6,958 in Walker Dunlop on August 27, 2024 and sell it today you would earn a total of 3,891 from holding Walker Dunlop or generate 55.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 9.38% |
| Values | Daily Returns |
Walker Dunlop vs. Citizens Holding
Performance |
| Timeline |
| Walker Dunlop |
| Citizens Holding |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Walker Dunlop and Citizens Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Citizens Holding
The main advantage of trading using opposite Walker Dunlop and Citizens Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Citizens Holding 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 Citizens Holding will offset losses from the drop in Citizens Holding'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 |
| Citizens Holding vs. Home Federal Bancorp | Citizens Holding vs. Lake Shore Bancorp | Citizens Holding vs. Community West Bancshares | Citizens Holding vs. Magyar Bancorp |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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