Correlation Between Walker Dunlop and Ensign Energy
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Ensign Energy 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 Ensign Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Ensign Energy Services, you can compare the effects of market volatilities on Walker Dunlop and Ensign Energy 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 Ensign Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Ensign Energy.
Diversification Opportunities for Walker Dunlop and Ensign Energy
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Walker and Ensign is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Ensign Energy Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ensign Energy Services 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 Ensign Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ensign Energy Services has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Ensign Energy go up and down completely randomly.
Pair Corralation between Walker Dunlop and Ensign Energy
Allowing for the 90-day total investment horizon Walker Dunlop is expected to under-perform the Ensign Energy. But the stock apears to be less risky and, when comparing its historical volatility, Walker Dunlop is 1.67 times less risky than Ensign Energy. The stock trades about -0.09 of its potential returns per unit of risk. The Ensign Energy Services is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 284.00 in Ensign Energy Services on August 26, 2024 and sell it today you would earn a total of 28.00 from holding Ensign Energy Services or generate 9.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walker Dunlop vs. Ensign Energy Services
Performance |
| Timeline |
| Walker Dunlop |
| Ensign Energy Services |
Walker Dunlop and Ensign Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Ensign Energy
The main advantage of trading using opposite Walker Dunlop and Ensign Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Ensign Energy 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 Ensign Energy will offset losses from the drop in Ensign Energy'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 |
| Ensign Energy vs. Precision Drilling | Ensign Energy vs. Trican Well Service | Ensign Energy vs. Calfrac Well Services | Ensign Energy vs. NuVista Energy |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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