Correlation Between Walker Dunlop and Federated High
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Federated High 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 Federated High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Federated High Income, you can compare the effects of market volatilities on Walker Dunlop and Federated High 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 Federated High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Federated High.
Diversification Opportunities for Walker Dunlop and Federated High
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Walker and Federated is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Federated High Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated High Income 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 Federated High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated High Income has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Federated High go up and down completely randomly.
Pair Corralation between Walker Dunlop and Federated High
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 11.67 times more return on investment than Federated High. However, Walker Dunlop is 11.67 times more volatile than Federated High Income. It trades about 0.08 of its potential returns per unit of risk. Federated High Income is currently generating about 0.27 per unit of risk. If you would invest 9,351 in Walker Dunlop on September 1, 2024 and sell it today you would earn a total of 1,667 from holding Walker Dunlop or generate 17.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Walker Dunlop vs. Federated High Income
Performance |
| Timeline |
| Walker Dunlop |
| Federated High Income |
Walker Dunlop and Federated High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Federated High
The main advantage of trading using opposite Walker Dunlop and Federated High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Federated High 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 Federated High will offset losses from the drop in Federated High'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 |
| Federated High vs. Ms Global Fixed | Federated High vs. T Rowe Price | Federated High vs. Versatile Bond Portfolio | Federated High vs. Ab Global Bond |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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