Correlation Between Walker Dunlop and Listed Funds
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Listed 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 Listed 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 Listed Funds Trust, you can compare the effects of market volatilities on Walker Dunlop and Listed 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 Listed Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Listed Funds.
Diversification Opportunities for Walker Dunlop and Listed Funds
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Walker and Listed is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Listed Funds Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Listed Funds Trust 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 Listed Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Listed Funds Trust has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Listed Funds go up and down completely randomly.
Pair Corralation between Walker Dunlop and Listed Funds
Allowing for the 90-day total investment horizon Walker Dunlop is expected to under-perform the Listed Funds. In addition to that, Walker Dunlop is 3.26 times more volatile than Listed Funds Trust. It trades about -0.06 of its total potential returns per unit of risk. Listed Funds Trust is currently generating about 0.17 per unit of volatility. If you would invest 3,623 in Listed Funds Trust on September 13, 2024 and sell it today you would earn a total of 53.00 from holding Listed Funds Trust or generate 1.46% 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. Listed Funds Trust
Performance |
| Timeline |
| Walker Dunlop |
| Listed Funds Trust |
Walker Dunlop and Listed Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Listed Funds
The main advantage of trading using opposite Walker Dunlop and Listed Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Listed 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 Listed Funds will offset losses from the drop in Listed 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 |
| Listed Funds vs. FT Vest Equity | Listed Funds vs. Northern Lights | Listed Funds vs. Dimensional International High | Listed Funds vs. JPMorgan Fundamental Data |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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