Correlation Between Walker Dunlop and CT Real
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and CT Real 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 CT Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and CT Real Estate, you can compare the effects of market volatilities on Walker Dunlop and CT Real 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 CT Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and CT Real.
Diversification Opportunities for Walker Dunlop and CT Real
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Walker and CRT-UN is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and CT Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CT Real Estate 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 CT Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CT Real Estate has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and CT Real go up and down completely randomly.
Pair Corralation between Walker Dunlop and CT Real
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 1.83 times more return on investment than CT Real. However, Walker Dunlop is 1.83 times more volatile than CT Real Estate. It trades about 0.04 of its potential returns per unit of risk. CT Real Estate is currently generating about 0.0 per unit of risk. If you would invest 7,371 in Walker Dunlop on November 1, 2024 and sell it today you would earn a total of 2,288 from holding Walker Dunlop or generate 31.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
Walker Dunlop vs. CT Real Estate
Performance |
| Timeline |
| Walker Dunlop |
| CT Real Estate |
Walker Dunlop and CT Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and CT Real
The main advantage of trading using opposite Walker Dunlop and CT Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, CT Real 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 CT Real will offset losses from the drop in CT Real's long position.| Walker Dunlop vs. Guild Holdings Co | Walker Dunlop vs. Security National Financial | Walker Dunlop vs. Encore Capital Group |
| CT Real vs. Choice Properties Real | CT Real vs. Crombie Real Estate | CT Real vs. Granite Real Estate | CT Real vs. Allied Properties Real |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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