Correlation Between Walker Dunlop and Concentric
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Concentric 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 Concentric into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Concentric AB, you can compare the effects of market volatilities on Walker Dunlop and Concentric 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 Concentric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Concentric.
Diversification Opportunities for Walker Dunlop and Concentric
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Walker and Concentric is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Concentric AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Concentric AB 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 Concentric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Concentric AB has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Concentric go up and down completely randomly.
Pair Corralation between Walker Dunlop and Concentric
Allowing for the 90-day total investment horizon Walker Dunlop is expected to under-perform the Concentric. In addition to that, Walker Dunlop is 3.48 times more volatile than Concentric AB. It trades about 0.0 of its total potential returns per unit of risk. Concentric AB is currently generating about 0.06 per unit of volatility. If you would invest 22,950 in Concentric AB on August 31, 2024 and sell it today you would earn a total of 50.00 from holding Concentric AB or generate 0.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 36.36% |
| Values | Daily Returns |
Walker Dunlop vs. Concentric AB
Performance |
| Timeline |
| Walker Dunlop |
| Concentric AB |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Walker Dunlop and Concentric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Concentric
The main advantage of trading using opposite Walker Dunlop and Concentric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Concentric 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 Concentric will offset losses from the drop in Concentric'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 |
| Concentric vs. Inwido AB | Concentric vs. Bufab Holding AB | Concentric vs. Beijer Alma AB | Concentric vs. Lindab International AB |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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