Correlation Between Walker Dunlop and AMCON Distributing
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and AMCON Distributing 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 AMCON Distributing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and AMCON Distributing, you can compare the effects of market volatilities on Walker Dunlop and AMCON Distributing 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 AMCON Distributing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and AMCON Distributing.
Diversification Opportunities for Walker Dunlop and AMCON Distributing
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Walker and AMCON is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and AMCON Distributing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMCON Distributing 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 AMCON Distributing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMCON Distributing has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and AMCON Distributing go up and down completely randomly.
Pair Corralation between Walker Dunlop and AMCON Distributing
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 0.33 times more return on investment than AMCON Distributing. However, Walker Dunlop is 3.0 times less risky than AMCON Distributing. It trades about -0.01 of its potential returns per unit of risk. AMCON Distributing is currently generating about -0.08 per unit of risk. If you would invest 10,916 in Walker Dunlop on August 24, 2024 and sell it today you would lose (67.00) from holding Walker Dunlop or give up 0.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Walker Dunlop vs. AMCON Distributing
Performance |
| Timeline |
| Walker Dunlop |
| AMCON Distributing |
Walker Dunlop and AMCON Distributing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and AMCON Distributing
The main advantage of trading using opposite Walker Dunlop and AMCON Distributing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, AMCON Distributing 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 AMCON Distributing will offset losses from the drop in AMCON Distributing's long position.| Walker Dunlop vs. Encore Capital Group | Walker Dunlop vs. Federal Home Loan | Walker Dunlop vs. Federal National Mortgage | Walker Dunlop vs. CNFinance Holdings |
| AMCON Distributing vs. The Chefs Warehouse | AMCON Distributing vs. G Willi Food International | AMCON Distributing vs. SpartanNash Co | AMCON Distributing vs. Calavo Growers |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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