Correlation Between Walker Dunlop and Galiano Gold
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Galiano Gold 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 Galiano Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Galiano Gold, you can compare the effects of market volatilities on Walker Dunlop and Galiano Gold 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 Galiano Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Galiano Gold.
Diversification Opportunities for Walker Dunlop and Galiano Gold
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Walker and Galiano is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Galiano Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Galiano Gold 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 Galiano Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Galiano Gold has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Galiano Gold go up and down completely randomly.
Pair Corralation between Walker Dunlop and Galiano Gold
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 0.47 times more return on investment than Galiano Gold. However, Walker Dunlop is 2.14 times less risky than Galiano Gold. It trades about 0.04 of its potential returns per unit of risk. Galiano Gold is currently generating about -0.25 per unit of risk. If you would invest 11,120 in Walker Dunlop on August 28, 2024 and sell it today you would earn a total of 129.00 from holding Walker Dunlop or generate 1.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walker Dunlop vs. Galiano Gold
Performance |
| Timeline |
| Walker Dunlop |
| Galiano Gold |
Walker Dunlop and Galiano Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Galiano Gold
The main advantage of trading using opposite Walker Dunlop and Galiano Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Galiano Gold 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 Galiano Gold will offset losses from the drop in Galiano Gold'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 |
| Galiano Gold vs. Avino Silver Gold | Galiano Gold vs. Americas Silver Corp | Galiano Gold vs. Paramount Gold Nevada | Galiano Gold vs. Fury Gold Mines |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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