Correlation Between Walker Dunlop and DAX Index
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By analyzing existing cross correlation between Walker Dunlop and DAX Index, you can compare the effects of market volatilities on Walker Dunlop and DAX Index 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 DAX Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and DAX Index.
Diversification Opportunities for Walker Dunlop and DAX Index
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Walker and DAX is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and DAX Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DAX 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 DAX Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DAX Index has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and DAX Index go up and down completely randomly.
Pair Corralation between Walker Dunlop and DAX Index
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 2.16 times more return on investment than DAX Index. However, Walker Dunlop is 2.16 times more volatile than DAX Index. It trades about 0.09 of its potential returns per unit of risk. DAX Index is currently generating about 0.05 per unit of risk. If you would invest 9,353 in Walker Dunlop on August 28, 2024 and sell it today you would earn a total of 1,896 from holding Walker Dunlop or generate 20.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 97.67% |
| Values | Daily Returns |
Walker Dunlop vs. DAX Index
Performance |
| Timeline |
Walker Dunlop and DAX Index Volatility Contrast
Predicted Return Density |
| Returns |
Walker Dunlop
Pair trading matchups for Walker Dunlop
DAX Index
Pair trading matchups for DAX Index
Pair Trading with Walker Dunlop and DAX Index
The main advantage of trading using opposite Walker Dunlop and DAX Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, DAX Index 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 DAX Index will offset losses from the drop in DAX Index'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 |
| DAX Index vs. ELMOS SEMICONDUCTOR | DAX Index vs. ALTAIR RES INC | DAX Index vs. Fair Isaac Corp | DAX Index vs. Taiwan Semiconductor Manufacturing |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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