Correlation Between Walker Dunlop and Franklin Bitcoin
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Franklin Bitcoin 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 Franklin Bitcoin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Franklin Bitcoin ETF, you can compare the effects of market volatilities on Walker Dunlop and Franklin Bitcoin 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 Franklin Bitcoin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Franklin Bitcoin.
Diversification Opportunities for Walker Dunlop and Franklin Bitcoin
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Walker and Franklin is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Franklin Bitcoin ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Bitcoin ETF 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 Franklin Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Bitcoin ETF has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Franklin Bitcoin go up and down completely randomly.
Pair Corralation between Walker Dunlop and Franklin Bitcoin
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 21.94 times less return on investment than Franklin Bitcoin. But when comparing it to its historical volatility, Walker Dunlop is 2.77 times less risky than Franklin Bitcoin. It trades about 0.05 of its potential returns per unit of risk. Franklin Bitcoin ETF is currently generating about 0.39 of returns per unit of risk over similar time horizon. If you would invest 4,052 in Franklin Bitcoin ETF on September 1, 2024 and sell it today you would earn a total of 1,580 from holding Franklin Bitcoin ETF or generate 38.99% 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. Franklin Bitcoin ETF
Performance |
| Timeline |
| Walker Dunlop |
| Franklin Bitcoin ETF |
Walker Dunlop and Franklin Bitcoin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Franklin Bitcoin
The main advantage of trading using opposite Walker Dunlop and Franklin Bitcoin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Franklin Bitcoin 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 Franklin Bitcoin will offset losses from the drop in Franklin Bitcoin'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 |
| Franklin Bitcoin vs. ProShares Trust | Franklin Bitcoin vs. iShares Ethereum Trust | Franklin Bitcoin vs. ProShares Trust | Franklin Bitcoin vs. Grayscale Ethereum Trust |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |