Correlation Between Walker Dunlop and Katipult Technology
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Katipult Technology 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 Katipult Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Katipult Technology Corp, you can compare the effects of market volatilities on Walker Dunlop and Katipult Technology 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 Katipult Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Katipult Technology.
Diversification Opportunities for Walker Dunlop and Katipult Technology
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Walker and Katipult is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Katipult Technology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Katipult Technology Corp 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 Katipult Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Katipult Technology Corp has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Katipult Technology go up and down completely randomly.
Pair Corralation between Walker Dunlop and Katipult Technology
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 3.69 times less return on investment than Katipult Technology. But when comparing it to its historical volatility, Walker Dunlop is 8.84 times less risky than Katipult Technology. It trades about 0.08 of its potential returns per unit of risk. Katipult Technology Corp is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 2.50 in Katipult Technology Corp on September 1, 2024 and sell it today you would lose (1.50) from holding Katipult Technology Corp or give up 60.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walker Dunlop vs. Katipult Technology Corp
Performance |
| Timeline |
| Walker Dunlop |
| Katipult Technology Corp |
Walker Dunlop and Katipult Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Katipult Technology
The main advantage of trading using opposite Walker Dunlop and Katipult Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Katipult Technology 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 Katipult Technology will offset losses from the drop in Katipult Technology'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 |
| Katipult Technology vs. Moovly Media | Katipult Technology vs. Lite Access Technologies | Katipult Technology vs. Braille Energy Systems | Katipult Technology vs. Solar Alliance Energy |
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.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |