Correlation Between Walker Dunlop and Crescent Steel
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Crescent Steel 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 Crescent Steel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Crescent Steel Allied, you can compare the effects of market volatilities on Walker Dunlop and Crescent Steel 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 Crescent Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Crescent Steel.
Diversification Opportunities for Walker Dunlop and Crescent Steel
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Walker and Crescent is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Crescent Steel Allied in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crescent Steel Allied 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 Crescent Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crescent Steel Allied has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Crescent Steel go up and down completely randomly.
Pair Corralation between Walker Dunlop and Crescent Steel
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 0.58 times more return on investment than Crescent Steel. However, Walker Dunlop is 1.71 times less risky than Crescent Steel. It trades about 0.05 of its potential returns per unit of risk. Crescent Steel Allied is currently generating about -0.03 per unit of risk. If you would invest 9,462 in Walker Dunlop on November 5, 2024 and sell it today you would earn a total of 145.00 from holding Walker Dunlop or generate 1.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.48% |
| Values | Daily Returns |
Walker Dunlop vs. Crescent Steel Allied
Performance |
| Timeline |
| Walker Dunlop |
| Crescent Steel Allied |
Walker Dunlop and Crescent Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Crescent Steel
The main advantage of trading using opposite Walker Dunlop and Crescent Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Crescent Steel 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 Crescent Steel will offset losses from the drop in Crescent Steel'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 |
| Crescent Steel vs. Crescent Star Insurance | Crescent Steel vs. Shaheen Insurance | Crescent Steel vs. Unilever Pakistan Foods | Crescent Steel vs. Pakistan Reinsurance |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |