Correlation Between Walker Dunlop and Cathay Pacific
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Cathay Pacific 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 Cathay Pacific into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Cathay Pacific Airways, you can compare the effects of market volatilities on Walker Dunlop and Cathay Pacific 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 Cathay Pacific. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Cathay Pacific.
Diversification Opportunities for Walker Dunlop and Cathay Pacific
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Walker and Cathay is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Cathay Pacific Airways in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cathay Pacific Airways 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 Cathay Pacific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cathay Pacific Airways has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Cathay Pacific go up and down completely randomly.
Pair Corralation between Walker Dunlop and Cathay Pacific
If you would invest 8,237 in Walker Dunlop on November 19, 2024 and sell it today you would earn a total of 407.00 from holding Walker Dunlop or generate 4.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Walker Dunlop vs. Cathay Pacific Airways
Performance |
| Timeline |
| Walker Dunlop |
| Cathay Pacific Airways |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Walker Dunlop and Cathay Pacific Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Cathay Pacific
The main advantage of trading using opposite Walker Dunlop and Cathay Pacific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Cathay Pacific 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 Cathay Pacific will offset losses from the drop in Cathay Pacific'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 |
| Cathay Pacific vs. Finnair Oyj | Cathay Pacific vs. easyJet plc | Cathay Pacific vs. Norse Atlantic ASA | Cathay Pacific vs. Air New Zealand |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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