Correlation Between Walker Dunlop and GEN Restaurant
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and GEN Restaurant 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 GEN Restaurant into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and GEN Restaurant Group,, you can compare the effects of market volatilities on Walker Dunlop and GEN Restaurant 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 GEN Restaurant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and GEN Restaurant.
Diversification Opportunities for Walker Dunlop and GEN Restaurant
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Walker and GEN is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and GEN Restaurant Group, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GEN Restaurant Group, 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 GEN Restaurant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GEN Restaurant Group, has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and GEN Restaurant go up and down completely randomly.
Pair Corralation between Walker Dunlop and GEN Restaurant
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 0.47 times more return on investment than GEN Restaurant. However, Walker Dunlop is 2.13 times less risky than GEN Restaurant. It trades about 0.06 of its potential returns per unit of risk. GEN Restaurant Group, is currently generating about -0.02 per unit of risk. If you would invest 7,518 in Walker Dunlop on August 28, 2024 and sell it today you would earn a total of 3,731 from holding Walker Dunlop or generate 49.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walker Dunlop vs. GEN Restaurant Group,
Performance |
| Timeline |
| Walker Dunlop |
| GEN Restaurant Group, |
Walker Dunlop and GEN Restaurant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and GEN Restaurant
The main advantage of trading using opposite Walker Dunlop and GEN Restaurant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, GEN Restaurant 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 GEN Restaurant will offset losses from the drop in GEN Restaurant'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 |
| GEN Restaurant vs. Cebu Air ADR | GEN Restaurant vs. ArcelorMittal SA ADR | GEN Restaurant vs. Grupo Simec SAB | GEN Restaurant vs. Corporacion America Airports |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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