Correlation Between Walker Dunlop and ProShares Ultra
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and ProShares Ultra 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 ProShares Ultra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and ProShares Ultra Oil, you can compare the effects of market volatilities on Walker Dunlop and ProShares Ultra 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 ProShares Ultra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and ProShares Ultra.
Diversification Opportunities for Walker Dunlop and ProShares Ultra
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Walker and ProShares is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and ProShares Ultra Oil in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Ultra Oil 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 ProShares Ultra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares Ultra Oil has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and ProShares Ultra go up and down completely randomly.
Pair Corralation between Walker Dunlop and ProShares Ultra
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 0.91 times more return on investment than ProShares Ultra. However, Walker Dunlop is 1.09 times less risky than ProShares Ultra. It trades about 0.06 of its potential returns per unit of risk. ProShares Ultra Oil is currently generating about 0.02 per unit of risk. If you would invest 8,204 in Walker Dunlop on August 29, 2024 and sell it today you would earn a total of 2,878 from holding Walker Dunlop or generate 35.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walker Dunlop vs. ProShares Ultra Oil
Performance |
| Timeline |
| Walker Dunlop |
| ProShares Ultra Oil |
Walker Dunlop and ProShares Ultra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and ProShares Ultra
The main advantage of trading using opposite Walker Dunlop and ProShares Ultra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, ProShares Ultra 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 ProShares Ultra will offset losses from the drop in ProShares Ultra'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 |
| ProShares Ultra vs. ProShares UltraShort Oil | ProShares Ultra vs. ProShares Ultra Basic | ProShares Ultra vs. ProShares Ultra Financials | ProShares Ultra vs. ProShares Ultra 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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