Correlation Between Walker Dunlop and Lyxor 1
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Lyxor 1 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 Lyxor 1 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Lyxor 1 , you can compare the effects of market volatilities on Walker Dunlop and Lyxor 1 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 Lyxor 1. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Lyxor 1.
Diversification Opportunities for Walker Dunlop and Lyxor 1
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Walker and Lyxor is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Lyxor 1 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lyxor 1 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 Lyxor 1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lyxor 1 has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Lyxor 1 go up and down completely randomly.
Pair Corralation between Walker Dunlop and Lyxor 1
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 1.66 times more return on investment than Lyxor 1. However, Walker Dunlop is 1.66 times more volatile than Lyxor 1 . It trades about 0.04 of its potential returns per unit of risk. Lyxor 1 is currently generating about -0.07 per unit of risk. If you would invest 11,120 in Walker Dunlop on August 28, 2024 and sell it today you would earn a total of 129.00 from holding Walker Dunlop or generate 1.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walker Dunlop vs. Lyxor 1
Performance |
| Timeline |
| Walker Dunlop |
| Lyxor 1 |
Walker Dunlop and Lyxor 1 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Lyxor 1
The main advantage of trading using opposite Walker Dunlop and Lyxor 1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Lyxor 1 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 Lyxor 1 will offset losses from the drop in Lyxor 1'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 |
| Lyxor 1 vs. Lyxor Fed Funds | Lyxor 1 vs. Lyxor BofAML USD | Lyxor 1 vs. Lyxor 1 TecDAX | Lyxor 1 vs. Lyxor UCITS EuroMTS |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |