Correlation Between Walker Dunlop and Djurslands Bank
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Djurslands Bank 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 Djurslands Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Djurslands Bank, you can compare the effects of market volatilities on Walker Dunlop and Djurslands Bank 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 Djurslands Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Djurslands Bank.
Diversification Opportunities for Walker Dunlop and Djurslands Bank
-0.91 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Walker and Djurslands is -0.91. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Djurslands Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Djurslands Bank 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 Djurslands Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Djurslands Bank has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Djurslands Bank go up and down completely randomly.
Pair Corralation between Walker Dunlop and Djurslands Bank
Allowing for the 90-day total investment horizon Walker Dunlop is expected to under-perform the Djurslands Bank. In addition to that, Walker Dunlop is 1.34 times more volatile than Djurslands Bank. It trades about -0.07 of its total potential returns per unit of risk. Djurslands Bank is currently generating about 0.09 per unit of volatility. If you would invest 58,000 in Djurslands Bank on October 26, 2024 and sell it today you would earn a total of 1,500 from holding Djurslands Bank or generate 2.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walker Dunlop vs. Djurslands Bank
Performance |
| Timeline |
| Walker Dunlop |
| Djurslands Bank |
Walker Dunlop and Djurslands Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Djurslands Bank
The main advantage of trading using opposite Walker Dunlop and Djurslands Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Djurslands Bank 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 Djurslands Bank will offset losses from the drop in Djurslands Bank'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 |
| Djurslands Bank vs. Skjern Bank AS | Djurslands Bank vs. Lollands Bank | Djurslands Bank vs. Kreditbanken AS | Djurslands Bank vs. Fynske Bank AS |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |