Correlation Between Walker Dunlop and Geely Automobile
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Geely Automobile 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 Geely Automobile into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Geely Automobile Holdings, you can compare the effects of market volatilities on Walker Dunlop and Geely Automobile 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 Geely Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Geely Automobile.
Diversification Opportunities for Walker Dunlop and Geely Automobile
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Walker and Geely is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Geely Automobile Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Geely Automobile Holdings 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 Geely Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Geely Automobile Holdings has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Geely Automobile go up and down completely randomly.
Pair Corralation between Walker Dunlop and Geely Automobile
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 2.38 times less return on investment than Geely Automobile. But when comparing it to its historical volatility, Walker Dunlop is 1.11 times less risky than Geely Automobile. It trades about 0.1 of its potential returns per unit of risk. Geely Automobile Holdings is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 3,598 in Geely Automobile Holdings on November 9, 2024 and sell it today you would earn a total of 352.00 from holding Geely Automobile Holdings or generate 9.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walker Dunlop vs. Geely Automobile Holdings
Performance |
| Timeline |
| Walker Dunlop |
| Geely Automobile Holdings |
Walker Dunlop and Geely Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Geely Automobile
The main advantage of trading using opposite Walker Dunlop and Geely Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Geely Automobile 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 Geely Automobile will offset losses from the drop in Geely Automobile'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 |
| Geely Automobile vs. Great Wall Motor | Geely Automobile vs. Polestar Automotive Holding | Geely Automobile vs. Dowlais Group plc | Geely Automobile vs. BYD Company Limited |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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