Correlation Between Walker Dunlop and Duta Pertiwi
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Duta Pertiwi 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 Duta Pertiwi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Duta Pertiwi Tbk, you can compare the effects of market volatilities on Walker Dunlop and Duta Pertiwi 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 Duta Pertiwi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Duta Pertiwi.
Diversification Opportunities for Walker Dunlop and Duta Pertiwi
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Walker and Duta is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Duta Pertiwi Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duta Pertiwi Tbk 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 Duta Pertiwi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Duta Pertiwi Tbk has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Duta Pertiwi go up and down completely randomly.
Pair Corralation between Walker Dunlop and Duta Pertiwi
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 0.52 times more return on investment than Duta Pertiwi. However, Walker Dunlop is 1.93 times less risky than Duta Pertiwi. It trades about 0.0 of its potential returns per unit of risk. Duta Pertiwi Tbk is currently generating about -0.01 per unit of risk. If you would invest 11,122 in Walker Dunlop on August 31, 2024 and sell it today you would lose (40.00) from holding Walker Dunlop or give up 0.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Walker Dunlop vs. Duta Pertiwi Tbk
Performance |
| Timeline |
| Walker Dunlop |
| Duta Pertiwi Tbk |
Walker Dunlop and Duta Pertiwi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Duta Pertiwi
The main advantage of trading using opposite Walker Dunlop and Duta Pertiwi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Duta Pertiwi 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 Duta Pertiwi will offset losses from the drop in Duta Pertiwi'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 |
| Duta Pertiwi vs. Lippo Cikarang Tbk | Duta Pertiwi vs. Lippo Karawaci Tbk | Duta Pertiwi vs. Intiland Development Tbk | Duta Pertiwi vs. Mitra Pinasthika Mustika |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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