Correlation Between Walker Dunlop and DICKER DATA
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and DICKER DATA 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 DICKER DATA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and DICKER DATA LTD, you can compare the effects of market volatilities on Walker Dunlop and DICKER DATA 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 DICKER DATA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and DICKER DATA.
Diversification Opportunities for Walker Dunlop and DICKER DATA
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Walker and DICKER is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and DICKER DATA LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DICKER DATA LTD 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 DICKER DATA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DICKER DATA LTD has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and DICKER DATA go up and down completely randomly.
Pair Corralation between Walker Dunlop and DICKER DATA
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 1.68 times less return on investment than DICKER DATA. But when comparing it to its historical volatility, Walker Dunlop is 1.56 times less risky than DICKER DATA. It trades about 0.05 of its potential returns per unit of risk. DICKER DATA LTD is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 499.00 in DICKER DATA LTD on September 1, 2024 and sell it today you would earn a total of 11.00 from holding DICKER DATA LTD or generate 2.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Walker Dunlop vs. DICKER DATA LTD
Performance |
| Timeline |
| Walker Dunlop |
| DICKER DATA LTD |
Walker Dunlop and DICKER DATA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and DICKER DATA
The main advantage of trading using opposite Walker Dunlop and DICKER DATA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, DICKER DATA 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 DICKER DATA will offset losses from the drop in DICKER DATA'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 |
| DICKER DATA vs. Japan Post Insurance | DICKER DATA vs. HANOVER INSURANCE | DICKER DATA vs. QBE Insurance Group | DICKER DATA vs. Selective Insurance Group |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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