Correlation Between Walker Dunlop and FTAC Emerald
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and FTAC Emerald 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 FTAC Emerald into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and FTAC Emerald Acquisition, you can compare the effects of market volatilities on Walker Dunlop and FTAC Emerald 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 FTAC Emerald. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and FTAC Emerald.
Diversification Opportunities for Walker Dunlop and FTAC Emerald
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Walker and FTAC is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and FTAC Emerald Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FTAC Emerald Acquisition 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 FTAC Emerald. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FTAC Emerald Acquisition has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and FTAC Emerald go up and down completely randomly.
Pair Corralation between Walker Dunlop and FTAC Emerald
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 5.09 times more return on investment than FTAC Emerald. However, Walker Dunlop is 5.09 times more volatile than FTAC Emerald Acquisition. It trades about 0.05 of its potential returns per unit of risk. FTAC Emerald Acquisition is currently generating about 0.1 per unit of risk. If you would invest 9,366 in Walker Dunlop on August 29, 2024 and sell it today you would earn a total of 1,830 from holding Walker Dunlop or generate 19.54% 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. FTAC Emerald Acquisition
Performance |
| Timeline |
| Walker Dunlop |
| FTAC Emerald Acquisition |
Walker Dunlop and FTAC Emerald Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and FTAC Emerald
The main advantage of trading using opposite Walker Dunlop and FTAC Emerald positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, FTAC Emerald 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 FTAC Emerald will offset losses from the drop in FTAC Emerald'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 |
| FTAC Emerald vs. Canlan Ice Sports | FTAC Emerald vs. NETGEAR | FTAC Emerald vs. Brunswick | FTAC Emerald vs. Weibo Corp |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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