Correlation Between Walker Dunlop and City National
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and City National 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 City National into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and City National Rochdale, you can compare the effects of market volatilities on Walker Dunlop and City National 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 City National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and City National.
Diversification Opportunities for Walker Dunlop and City National
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Walker and City is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and City National Rochdale in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on City National Rochdale 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 City National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of City National Rochdale has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and City National go up and down completely randomly.
Pair Corralation between Walker Dunlop and City National
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 2.39 times more return on investment than City National. However, Walker Dunlop is 2.39 times more volatile than City National Rochdale. It trades about 0.04 of its potential returns per unit of risk. City National Rochdale is currently generating about 0.06 per unit of risk. If you would invest 7,669 in Walker Dunlop on September 4, 2024 and sell it today you would earn a total of 3,352 from holding Walker Dunlop or generate 43.71% 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. City National Rochdale
Performance |
| Timeline |
| Walker Dunlop |
| City National Rochdale |
Walker Dunlop and City National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and City National
The main advantage of trading using opposite Walker Dunlop and City National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, City National 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 City National will offset losses from the drop in City National'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 |
| City National vs. Gmo Resources | City National vs. Salient Mlp Energy | City National vs. Adams Natural Resources | City National vs. Clearbridge Energy Mlp |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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