Correlation Between Walker Dunlop and Greater Cannabis
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Greater Cannabis 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 Greater Cannabis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Greater Cannabis, you can compare the effects of market volatilities on Walker Dunlop and Greater Cannabis 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 Greater Cannabis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Greater Cannabis.
Diversification Opportunities for Walker Dunlop and Greater Cannabis
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Walker and Greater is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Greater Cannabis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greater Cannabis 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 Greater Cannabis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greater Cannabis has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Greater Cannabis go up and down completely randomly.
Pair Corralation between Walker Dunlop and Greater Cannabis
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 0.11 times more return on investment than Greater Cannabis. However, Walker Dunlop is 8.81 times less risky than Greater Cannabis. It trades about -0.01 of its potential returns per unit of risk. Greater Cannabis is currently generating about -0.01 per unit of risk. If you would invest 11,120 in Walker Dunlop on August 29, 2024 and sell it today you would lose (64.00) from holding Walker Dunlop or give up 0.58% 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. Greater Cannabis
Performance |
| Timeline |
| Walker Dunlop |
| Greater Cannabis |
Walker Dunlop and Greater Cannabis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Greater Cannabis
The main advantage of trading using opposite Walker Dunlop and Greater Cannabis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Greater Cannabis 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 Greater Cannabis will offset losses from the drop in Greater Cannabis' 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |