Correlation Between Walker Dunlop and Marblegate Acquisition
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Marblegate Acquisition 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 Marblegate Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Marblegate Acquisition Corp, you can compare the effects of market volatilities on Walker Dunlop and Marblegate Acquisition 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 Marblegate Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Marblegate Acquisition.
Diversification Opportunities for Walker Dunlop and Marblegate Acquisition
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Walker and Marblegate is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Marblegate Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marblegate 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 Marblegate Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marblegate Acquisition has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Marblegate Acquisition go up and down completely randomly.
Pair Corralation between Walker Dunlop and Marblegate Acquisition
Allowing for the 90-day total investment horizon Walker Dunlop is expected to under-perform the Marblegate Acquisition. But the stock apears to be less risky and, when comparing its historical volatility, Walker Dunlop is 1.98 times less risky than Marblegate Acquisition. The stock trades about 0.0 of its potential returns per unit of risk. The Marblegate Acquisition Corp is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 3.00 in Marblegate Acquisition Corp on August 30, 2024 and sell it today you would earn a total of 0.20 from holding Marblegate Acquisition Corp or generate 6.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walker Dunlop vs. Marblegate Acquisition Corp
Performance |
| Timeline |
| Walker Dunlop |
| Marblegate Acquisition |
Walker Dunlop and Marblegate Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Marblegate Acquisition
The main advantage of trading using opposite Walker Dunlop and Marblegate Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Marblegate Acquisition 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 Marblegate Acquisition will offset losses from the drop in Marblegate Acquisition'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 |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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