Correlation Between Walker Dunlop and Easterly Government
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Easterly Government 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 Easterly Government into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Easterly Government Properties, you can compare the effects of market volatilities on Walker Dunlop and Easterly Government 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 Easterly Government. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Easterly Government.
Diversification Opportunities for Walker Dunlop and Easterly Government
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Walker and Easterly is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Easterly Government Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Easterly Government 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 Easterly Government. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Easterly Government has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Easterly Government go up and down completely randomly.
Pair Corralation between Walker Dunlop and Easterly Government
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 1.41 times more return on investment than Easterly Government. However, Walker Dunlop is 1.41 times more volatile than Easterly Government Properties. It trades about 0.05 of its potential returns per unit of risk. Easterly Government Properties is currently generating about 0.01 per unit of risk. If you would invest 7,348 in Walker Dunlop on September 12, 2024 and sell it today you would earn a total of 3,294 from holding Walker Dunlop or generate 44.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.21% |
| Values | Daily Returns |
Walker Dunlop vs. Easterly Government Properties
Performance |
| Timeline |
| Walker Dunlop |
| Easterly Government |
Walker Dunlop and Easterly Government Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Easterly Government
The main advantage of trading using opposite Walker Dunlop and Easterly Government positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Easterly Government 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 Easterly Government will offset losses from the drop in Easterly Government'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 |
| Easterly Government vs. Office Properties Income | Easterly Government vs. CITY OFFICE REIT | Easterly Government vs. CREMECOMTRSBI DL 001 | Easterly Government vs. Superior Plus Corp |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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