Correlation Between Walker Dunlop and FIRST MUTUAL
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and FIRST MUTUAL 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 FIRST MUTUAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and FIRST MUTUAL HOLDINGS, you can compare the effects of market volatilities on Walker Dunlop and FIRST MUTUAL 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 FIRST MUTUAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and FIRST MUTUAL.
Diversification Opportunities for Walker Dunlop and FIRST MUTUAL
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Walker and FIRST is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and FIRST MUTUAL HOLDINGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FIRST MUTUAL HOLDINGS 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 FIRST MUTUAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FIRST MUTUAL HOLDINGS has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and FIRST MUTUAL go up and down completely randomly.
Pair Corralation between Walker Dunlop and FIRST MUTUAL
Allowing for the 90-day total investment horizon Walker Dunlop is expected to under-perform the FIRST MUTUAL. In addition to that, Walker Dunlop is 2.37 times more volatile than FIRST MUTUAL HOLDINGS. It trades about 0.0 of its total potential returns per unit of risk. FIRST MUTUAL HOLDINGS is currently generating about 0.31 per unit of volatility. If you would invest 43,050 in FIRST MUTUAL HOLDINGS on August 30, 2024 and sell it today you would earn a total of 1,945 from holding FIRST MUTUAL HOLDINGS or generate 4.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Walker Dunlop vs. FIRST MUTUAL HOLDINGS
Performance |
| Timeline |
| Walker Dunlop |
| FIRST MUTUAL HOLDINGS |
Walker Dunlop and FIRST MUTUAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and FIRST MUTUAL
The main advantage of trading using opposite Walker Dunlop and FIRST MUTUAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, FIRST MUTUAL 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 FIRST MUTUAL will offset losses from the drop in FIRST MUTUAL's long position.| Walker Dunlop vs. Velocity Financial Llc | Walker Dunlop vs. Security National Financial | Walker Dunlop vs. Encore Capital Group | Walker Dunlop vs. PennyMac Finl Svcs |
| FIRST MUTUAL vs. FIRST MUTUAL PROPERTIES | FIRST MUTUAL vs. STAR AFRICA PORATION | FIRST MUTUAL vs. CAFCA LIMITED | FIRST MUTUAL vs. AFRICAN DISTILLERS LIMITED |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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