Correlation Between Walker Dunlop and Camden Property
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Camden Property 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 Camden Property into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Camden Property Trust, you can compare the effects of market volatilities on Walker Dunlop and Camden Property 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 Camden Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Camden Property.
Diversification Opportunities for Walker Dunlop and Camden Property
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Walker and Camden is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Camden Property Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Camden Property Trust 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 Camden Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Camden Property Trust has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Camden Property go up and down completely randomly.
Pair Corralation between Walker Dunlop and Camden Property
Allowing for the 90-day total investment horizon Walker Dunlop is expected to under-perform the Camden Property. In addition to that, Walker Dunlop is 1.2 times more volatile than Camden Property Trust. It trades about -0.02 of its total potential returns per unit of risk. Camden Property Trust is currently generating about 0.24 per unit of volatility. If you would invest 11,736 in Camden Property Trust on August 31, 2024 and sell it today you would earn a total of 844.00 from holding Camden Property Trust or generate 7.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walker Dunlop vs. Camden Property Trust
Performance |
| Timeline |
| Walker Dunlop |
| Camden Property Trust |
Walker Dunlop and Camden Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Camden Property
The main advantage of trading using opposite Walker Dunlop and Camden Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Camden Property 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 Camden Property will offset losses from the drop in Camden Property'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 |
| Camden Property vs. AvalonBay Communities | Camden Property vs. Essex Property Trust | Camden Property vs. Equity Residential | Camden Property vs. UDR Inc |
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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