Correlation Between Walker Dunlop and Dragon Capital
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Dragon Capital 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 Dragon Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Dragon Capital Grp, you can compare the effects of market volatilities on Walker Dunlop and Dragon Capital 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 Dragon Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Dragon Capital.
Diversification Opportunities for Walker Dunlop and Dragon Capital
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Walker and Dragon is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Dragon Capital Grp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dragon Capital Grp 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 Dragon Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dragon Capital Grp has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Dragon Capital go up and down completely randomly.
Pair Corralation between Walker Dunlop and Dragon Capital
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 32.99 times less return on investment than Dragon Capital. But when comparing it to its historical volatility, Walker Dunlop is 13.23 times less risky than Dragon Capital. It trades about 0.04 of its potential returns per unit of risk. Dragon Capital Grp is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 0.09 in Dragon Capital Grp on August 29, 2024 and sell it today you would lose (0.07) from holding Dragon Capital Grp or give up 77.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Walker Dunlop vs. Dragon Capital Grp
Performance |
| Timeline |
| Walker Dunlop |
| Dragon Capital Grp |
Walker Dunlop and Dragon Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Dragon Capital
The main advantage of trading using opposite Walker Dunlop and Dragon Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Dragon Capital 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 Dragon Capital will offset losses from the drop in Dragon Capital'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 |
| Dragon Capital vs. Crypto Co | Dragon Capital vs. Global Develpmts | Dragon Capital vs. Parsons Corp | Dragon Capital vs. GBT Technologies |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |