Correlation Between Walker Dunlop and Immolease Trust
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Immolease Trust 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 Immolease Trust into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Immolease Trust NV, you can compare the effects of market volatilities on Walker Dunlop and Immolease Trust 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 Immolease Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Immolease Trust.
Diversification Opportunities for Walker Dunlop and Immolease Trust
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Walker and Immolease is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Immolease Trust NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immolease Trust NV 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 Immolease Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immolease Trust NV has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Immolease Trust go up and down completely randomly.
Pair Corralation between Walker Dunlop and Immolease Trust
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 0.71 times more return on investment than Immolease Trust. However, Walker Dunlop is 1.4 times less risky than Immolease Trust. It trades about 0.08 of its potential returns per unit of risk. Immolease Trust NV is currently generating about 0.02 per unit of risk. If you would invest 6,008 in Walker Dunlop on August 29, 2024 and sell it today you would earn a total of 5,048 from holding Walker Dunlop or generate 84.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 75.83% |
| Values | Daily Returns |
Walker Dunlop vs. Immolease Trust NV
Performance |
| Timeline |
| Walker Dunlop |
| Immolease Trust NV |
Walker Dunlop and Immolease Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Immolease Trust
The main advantage of trading using opposite Walker Dunlop and Immolease Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Immolease Trust 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 Immolease Trust will offset losses from the drop in Immolease Trust'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 |
| Immolease Trust vs. Immobel | Immolease Trust vs. Accentis | Immolease Trust vs. Exmar NV | Immolease Trust vs. Iep Invest |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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