Correlation Between Walker Dunlop and Celestica
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Celestica 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 Celestica into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Celestica, you can compare the effects of market volatilities on Walker Dunlop and Celestica 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 Celestica. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Celestica.
Diversification Opportunities for Walker Dunlop and Celestica
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Walker and Celestica is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Celestica in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celestica 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 Celestica. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Celestica has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Celestica go up and down completely randomly.
Pair Corralation between Walker Dunlop and Celestica
Allowing for the 90-day total investment horizon Walker Dunlop is expected to under-perform the Celestica. But the stock apears to be less risky and, when comparing its historical volatility, Walker Dunlop is 2.42 times less risky than Celestica. The stock trades about -0.06 of its potential returns per unit of risk. The Celestica is currently generating about 0.39 of returns per unit of risk over similar time horizon. If you would invest 6,841 in Celestica on August 26, 2024 and sell it today you would earn a total of 5,613 from holding Celestica or generate 82.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.73% |
| Values | Daily Returns |
Walker Dunlop vs. Celestica
Performance |
| Timeline |
| Walker Dunlop |
| Celestica |
Walker Dunlop and Celestica Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Celestica
The main advantage of trading using opposite Walker Dunlop and Celestica positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Celestica 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 Celestica will offset losses from the drop in Celestica'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 |
| Celestica vs. Descartes Systems Group | Celestica vs. CAE Inc | Celestica vs. CGI Inc | Celestica vs. Cogeco Communications |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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