Correlation Between Walker Dunlop and Federated Emerging
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Federated Emerging 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 Federated Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Federated Emerging Market, you can compare the effects of market volatilities on Walker Dunlop and Federated Emerging 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 Federated Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Federated Emerging.
Diversification Opportunities for Walker Dunlop and Federated Emerging
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Walker and Federated is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Federated Emerging Market in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Emerging Market 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 Federated Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated Emerging Market has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Federated Emerging go up and down completely randomly.
Pair Corralation between Walker Dunlop and Federated Emerging
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 5.73 times more return on investment than Federated Emerging. However, Walker Dunlop is 5.73 times more volatile than Federated Emerging Market. It trades about 0.04 of its potential returns per unit of risk. Federated Emerging Market is currently generating about 0.11 per unit of risk. If you would invest 8,615 in Walker Dunlop on August 26, 2024 and sell it today you would earn a total of 2,234 from holding Walker Dunlop or generate 25.93% 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. Federated Emerging Market
Performance |
| Timeline |
| Walker Dunlop |
| Federated Emerging Market |
Walker Dunlop and Federated Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Federated Emerging
The main advantage of trading using opposite Walker Dunlop and Federated Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Federated Emerging 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 Federated Emerging will offset losses from the drop in Federated Emerging'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 |
| Federated Emerging vs. Federated Mdt All | Federated Emerging vs. Federated Mdt Balanced | Federated Emerging vs. Federated Global Allocation | Federated Emerging vs. Federated Hermes Emerging |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |