Correlation Between Walker Dunlop and Franklin FTSE
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Franklin FTSE 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 Franklin FTSE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Franklin FTSE Brazil, you can compare the effects of market volatilities on Walker Dunlop and Franklin FTSE 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 Franklin FTSE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Franklin FTSE.
Diversification Opportunities for Walker Dunlop and Franklin FTSE
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Walker and Franklin is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Franklin FTSE Brazil in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin FTSE Brazil 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 Franklin FTSE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin FTSE Brazil has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Franklin FTSE go up and down completely randomly.
Pair Corralation between Walker Dunlop and Franklin FTSE
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 1.29 times more return on investment than Franklin FTSE. However, Walker Dunlop is 1.29 times more volatile than Franklin FTSE Brazil. It trades about 0.06 of its potential returns per unit of risk. Franklin FTSE Brazil is currently generating about -0.15 per unit of risk. If you would invest 10,435 in Walker Dunlop on September 3, 2024 and sell it today you would earn a total of 583.00 from holding Walker Dunlop or generate 5.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.46% |
| Values | Daily Returns |
Walker Dunlop vs. Franklin FTSE Brazil
Performance |
| Timeline |
| Walker Dunlop |
| Franklin FTSE Brazil |
Walker Dunlop and Franklin FTSE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Franklin FTSE
The main advantage of trading using opposite Walker Dunlop and Franklin FTSE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Franklin FTSE 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 Franklin FTSE will offset losses from the drop in Franklin FTSE'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 |
| Franklin FTSE vs. Franklin LibertyQ Global | Franklin FTSE vs. Franklin Libertyshares ICAV | Franklin FTSE vs. Franklin FTSE Asia | Franklin FTSE vs. Franklin LibertyQ AC |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |