Correlation Between Walker Dunlop and Gold Reserve
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Gold Reserve 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 Gold Reserve into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Gold Reserve, you can compare the effects of market volatilities on Walker Dunlop and Gold Reserve 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 Gold Reserve. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Gold Reserve.
Diversification Opportunities for Walker Dunlop and Gold Reserve
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Walker and Gold is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Gold Reserve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gold Reserve 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 Gold Reserve. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gold Reserve has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Gold Reserve go up and down completely randomly.
Pair Corralation between Walker Dunlop and Gold Reserve
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 0.49 times more return on investment than Gold Reserve. However, Walker Dunlop is 2.05 times less risky than Gold Reserve. It trades about 0.04 of its potential returns per unit of risk. Gold Reserve is currently generating about 0.0 per unit of risk. If you would invest 8,615 in Walker Dunlop on August 26, 2024 and sell it today you would earn a total of 2,234 from holding Walker Dunlop or generate 25.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walker Dunlop vs. Gold Reserve
Performance |
| Timeline |
| Walker Dunlop |
| Gold Reserve |
Walker Dunlop and Gold Reserve Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Gold Reserve
The main advantage of trading using opposite Walker Dunlop and Gold Reserve positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Gold Reserve 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 Gold Reserve will offset losses from the drop in Gold Reserve'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 |
| Gold Reserve vs. Monarch Mining | Gold Reserve vs. Lundin Gold | Gold Reserve vs. Liberty Gold Corp | Gold Reserve vs. Minera Alamos |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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