Correlation Between Walker Dunlop and GH Research
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and GH Research 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 GH Research into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and GH Research PLC, you can compare the effects of market volatilities on Walker Dunlop and GH Research 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 GH Research. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and GH Research.
Diversification Opportunities for Walker Dunlop and GH Research
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Walker and GHRS is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and GH Research PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GH Research PLC 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 GH Research. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GH Research PLC has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and GH Research go up and down completely randomly.
Pair Corralation between Walker Dunlop and GH Research
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 1.39 times less return on investment than GH Research. But when comparing it to its historical volatility, Walker Dunlop is 2.35 times less risky than GH Research. It trades about 0.05 of its potential returns per unit of risk. GH Research PLC is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 872.00 in GH Research PLC on August 25, 2024 and sell it today you would earn a total of 55.00 from holding GH Research PLC or generate 6.31% 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. GH Research PLC
Performance |
| Timeline |
| Walker Dunlop |
| GH Research PLC |
Walker Dunlop and GH Research Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and GH Research
The main advantage of trading using opposite Walker Dunlop and GH Research positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, GH Research 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 GH Research will offset losses from the drop in GH Research'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 |
| GH Research vs. Molecular Partners AG | GH Research vs. MediciNova | GH Research vs. Anebulo Pharmaceuticals | GH Research vs. Champions Oncology |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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