Correlation Between Walker Dunlop and Fast Ejendom
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Fast Ejendom 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 Fast Ejendom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Fast Ejendom, you can compare the effects of market volatilities on Walker Dunlop and Fast Ejendom 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 Fast Ejendom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Fast Ejendom.
Diversification Opportunities for Walker Dunlop and Fast Ejendom
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Walker and Fast is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Fast Ejendom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fast Ejendom 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 Fast Ejendom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fast Ejendom has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Fast Ejendom go up and down completely randomly.
Pair Corralation between Walker Dunlop and Fast Ejendom
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 1.54 times more return on investment than Fast Ejendom. However, Walker Dunlop is 1.54 times more volatile than Fast Ejendom. It trades about -0.01 of its potential returns per unit of risk. Fast Ejendom is currently generating about -0.14 per unit of risk. If you would invest 11,120 in Walker Dunlop on August 29, 2024 and sell it today you would lose (64.00) from holding Walker Dunlop or give up 0.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walker Dunlop vs. Fast Ejendom
Performance |
| Timeline |
| Walker Dunlop |
| Fast Ejendom |
Walker Dunlop and Fast Ejendom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Fast Ejendom
The main advantage of trading using opposite Walker Dunlop and Fast Ejendom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Fast Ejendom 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 Fast Ejendom will offset losses from the drop in Fast Ejendom'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 |
| Fast Ejendom vs. Jeudan | Fast Ejendom vs. Copenhagen Capital AS | Fast Ejendom vs. Cemat AS | Fast Ejendom vs. Movinn AS |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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