Correlation Between Walker Dunlop and CI Global
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and CI Global 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 CI Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and CI Global Unconstrained, you can compare the effects of market volatilities on Walker Dunlop and CI Global 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 CI Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and CI Global.
Diversification Opportunities for Walker Dunlop and CI Global
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Walker and CUBD is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and CI Global Unconstrained in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI Global Unconstrained 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 CI Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CI Global Unconstrained has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and CI Global go up and down completely randomly.
Pair Corralation between Walker Dunlop and CI Global
Allowing for the 90-day total investment horizon Walker Dunlop is expected to under-perform the CI Global. In addition to that, Walker Dunlop is 5.93 times more volatile than CI Global Unconstrained. It trades about 0.0 of its total potential returns per unit of risk. CI Global Unconstrained is currently generating about 0.13 per unit of volatility. If you would invest 2,038 in CI Global Unconstrained on August 30, 2024 and sell it today you would earn a total of 16.00 from holding CI Global Unconstrained or generate 0.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walker Dunlop vs. CI Global Unconstrained
Performance |
| Timeline |
| Walker Dunlop |
| CI Global Unconstrained |
Walker Dunlop and CI Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and CI Global
The main advantage of trading using opposite Walker Dunlop and CI Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, CI Global 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 CI Global will offset losses from the drop in CI Global'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 |
| CI Global vs. Phillips, Hager North | CI Global vs. CI Signature Cat | CI Global vs. Rbc North American | CI Global vs. Russell Investments Global |
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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