Correlation Between Walker Dunlop and DUSK
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and DUSK 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 DUSK into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and DUSK, you can compare the effects of market volatilities on Walker Dunlop and DUSK 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 DUSK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and DUSK.
Diversification Opportunities for Walker Dunlop and DUSK
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Walker and DUSK is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and DUSK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DUSK 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 DUSK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DUSK has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and DUSK go up and down completely randomly.
Pair Corralation between Walker Dunlop and DUSK
Allowing for the 90-day total investment horizon Walker Dunlop is expected to under-perform the DUSK. But the stock apears to be less risky and, when comparing its historical volatility, Walker Dunlop is 3.02 times less risky than DUSK. The stock trades about 0.0 of its potential returns per unit of risk. The DUSK is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 18.00 in DUSK on August 30, 2024 and sell it today you would earn a total of 5.00 from holding DUSK or generate 27.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walker Dunlop vs. DUSK
Performance |
| Timeline |
| Walker Dunlop |
| DUSK |
Walker Dunlop and DUSK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and DUSK
The main advantage of trading using opposite Walker Dunlop and DUSK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, DUSK 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 DUSK will offset losses from the drop in DUSK'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 |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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