Correlation Between Walker Dunlop and Fbc Hldg
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Fbc Hldg 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 Fbc Hldg into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Fbc Hldg, you can compare the effects of market volatilities on Walker Dunlop and Fbc Hldg 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 Fbc Hldg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Fbc Hldg.
Diversification Opportunities for Walker Dunlop and Fbc Hldg
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Walker and Fbc is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Fbc Hldg in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fbc Hldg 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 Fbc Hldg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fbc Hldg has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Fbc Hldg go up and down completely randomly.
Pair Corralation between Walker Dunlop and Fbc Hldg
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 965.87 times less return on investment than Fbc Hldg. But when comparing it to its historical volatility, Walker Dunlop is 179.36 times less risky than Fbc Hldg. It trades about 0.06 of its potential returns per unit of risk. Fbc Hldg is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 0.01 in Fbc Hldg on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Fbc Hldg or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.34% |
| Values | Daily Returns |
Walker Dunlop vs. Fbc Hldg
Performance |
| Timeline |
| Walker Dunlop |
| Fbc Hldg |
Walker Dunlop and Fbc Hldg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Fbc Hldg
The main advantage of trading using opposite Walker Dunlop and Fbc Hldg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Fbc Hldg 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 Fbc Hldg will offset losses from the drop in Fbc Hldg'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 |
| Fbc Hldg vs. Cato Corporation | Fbc Hldg vs. Zumiez Inc | Fbc Hldg vs. Digital Brands Group | Fbc Hldg vs. Buckle Inc |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |