Correlation Between Walker Dunlop and Growth Allocation
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Growth Allocation 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 Growth Allocation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Growth Allocation Index, you can compare the effects of market volatilities on Walker Dunlop and Growth Allocation 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 Growth Allocation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Growth Allocation.
Diversification Opportunities for Walker Dunlop and Growth Allocation
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Walker and Growth is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Growth Allocation Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Growth Allocation Index 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 Growth Allocation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Growth Allocation Index has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Growth Allocation go up and down completely randomly.
Pair Corralation between Walker Dunlop and Growth Allocation
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 3.79 times more return on investment than Growth Allocation. However, Walker Dunlop is 3.79 times more volatile than Growth Allocation Index. It trades about 0.04 of its potential returns per unit of risk. Growth Allocation Index is currently generating about 0.1 per unit of risk. If you would invest 8,063 in Walker Dunlop on August 24, 2024 and sell it today you would earn a total of 2,786 from holding Walker Dunlop or generate 34.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Walker Dunlop vs. Growth Allocation Index
Performance |
| Timeline |
| Walker Dunlop |
| Growth Allocation Index |
Walker Dunlop and Growth Allocation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Growth Allocation
The main advantage of trading using opposite Walker Dunlop and Growth Allocation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Growth Allocation 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 Growth Allocation will offset losses from the drop in Growth Allocation's long position.| Walker Dunlop vs. Encore Capital Group | Walker Dunlop vs. Federal Home Loan | Walker Dunlop vs. CNFinance Holdings | Walker Dunlop vs. Greystone Housing Impact |
| Growth Allocation vs. Technology Ultrasector Profund | Growth Allocation vs. Hennessy Technology Fund | Growth Allocation vs. Towpath Technology | Growth Allocation vs. Janus Global Technology |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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