Correlation Between Walker Dunlop and Enbridge
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Enbridge 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 Enbridge into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Enbridge, you can compare the effects of market volatilities on Walker Dunlop and Enbridge 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 Enbridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Enbridge.
Diversification Opportunities for Walker Dunlop and Enbridge
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Walker and Enbridge is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Enbridge in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enbridge 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 Enbridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enbridge has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Enbridge go up and down completely randomly.
Pair Corralation between Walker Dunlop and Enbridge
Allowing for the 90-day total investment horizon Walker Dunlop is expected to under-perform the Enbridge. In addition to that, Walker Dunlop is 1.05 times more volatile than Enbridge. It trades about -0.16 of its total potential returns per unit of risk. Enbridge is currently generating about 0.34 per unit of volatility. If you would invest 3,782 in Enbridge on August 25, 2024 and sell it today you would earn a total of 392.00 from holding Enbridge or generate 10.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walker Dunlop vs. Enbridge
Performance |
| Timeline |
| Walker Dunlop |
| Enbridge |
Walker Dunlop and Enbridge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Enbridge
The main advantage of trading using opposite Walker Dunlop and Enbridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Enbridge 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 Enbridge will offset losses from the drop in Enbridge's long position.| Walker Dunlop vs. Encore Capital Group | Walker Dunlop vs. Federal Home Loan | Walker Dunlop vs. CNFinance Holdings | Walker Dunlop vs. Greystone Housing Impact |
| Enbridge vs. InterContinental Hotels Group | Enbridge vs. ITALIAN WINE BRANDS | Enbridge vs. NH HOTEL GROUP | Enbridge vs. CHINA TONTINE WINES |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |