Correlation Between Walker Dunlop and American Funds
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and American Funds 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 American Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and American Funds 2040, you can compare the effects of market volatilities on Walker Dunlop and American Funds 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 American Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and American Funds.
Diversification Opportunities for Walker Dunlop and American Funds
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Walker and American is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and American Funds 2040 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Funds 2040 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 American Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Funds 2040 has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and American Funds go up and down completely randomly.
Pair Corralation between Walker Dunlop and American Funds
Allowing for the 90-day total investment horizon Walker Dunlop is expected to under-perform the American Funds. In addition to that, Walker Dunlop is 2.66 times more volatile than American Funds 2040. It trades about -0.01 of its total potential returns per unit of risk. American Funds 2040 is currently generating about 0.1 per unit of volatility. If you would invest 2,135 in American Funds 2040 on August 29, 2024 and sell it today you would earn a total of 28.00 from holding American Funds 2040 or generate 1.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walker Dunlop vs. American Funds 2040
Performance |
| Timeline |
| Walker Dunlop |
| American Funds 2040 |
Walker Dunlop and American Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and American Funds
The main advantage of trading using opposite Walker Dunlop and American Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, American Funds 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 American Funds will offset losses from the drop in American Funds' 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 |
| American Funds vs. Target Retirement 2040 | American Funds vs. Qs Moderate Growth | American Funds vs. Fidelity Managed Retirement | American Funds vs. Dimensional Retirement Income |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Positions Ratings 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 |