Correlation Between Walker Dunlop and Eiffage SA
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Eiffage SA 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 Eiffage SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Eiffage SA, you can compare the effects of market volatilities on Walker Dunlop and Eiffage SA 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 Eiffage SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Eiffage SA.
Diversification Opportunities for Walker Dunlop and Eiffage SA
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Walker and Eiffage is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Eiffage SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eiffage SA 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 Eiffage SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eiffage SA has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Eiffage SA go up and down completely randomly.
Pair Corralation between Walker Dunlop and Eiffage SA
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 1.56 times more return on investment than Eiffage SA. However, Walker Dunlop is 1.56 times more volatile than Eiffage SA. It trades about -0.01 of its potential returns per unit of risk. Eiffage SA is currently generating about -0.14 per unit of risk. If you would invest 11,120 in Walker Dunlop on August 28, 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 Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walker Dunlop vs. Eiffage SA
Performance |
| Timeline |
| Walker Dunlop |
| Eiffage SA |
Walker Dunlop and Eiffage SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Eiffage SA
The main advantage of trading using opposite Walker Dunlop and Eiffage SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Eiffage SA 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 Eiffage SA will offset losses from the drop in Eiffage SA'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 |
| Eiffage SA vs. SQLI SA | Eiffage SA vs. Foncire Volta | Eiffage SA vs. Moulinvest | Eiffage SA vs. Manitou BF SA |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |