Correlation Between Walker Dunlop and Gigante Salmon
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Gigante Salmon 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 Gigante Salmon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Gigante Salmon AS, you can compare the effects of market volatilities on Walker Dunlop and Gigante Salmon 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 Gigante Salmon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Gigante Salmon.
Diversification Opportunities for Walker Dunlop and Gigante Salmon
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Walker and Gigante is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Gigante Salmon AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gigante Salmon AS 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 Gigante Salmon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gigante Salmon AS has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Gigante Salmon go up and down completely randomly.
Pair Corralation between Walker Dunlop and Gigante Salmon
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 0.78 times more return on investment than Gigante Salmon. However, Walker Dunlop is 1.28 times less risky than Gigante Salmon. It trades about 0.04 of its potential returns per unit of risk. Gigante Salmon AS is currently generating about 0.02 per unit of risk. If you would invest 7,547 in Walker Dunlop on September 5, 2024 and sell it today you would earn a total of 3,369 from holding Walker Dunlop or generate 44.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Walker Dunlop vs. Gigante Salmon AS
Performance |
| Timeline |
| Walker Dunlop |
| Gigante Salmon AS |
Walker Dunlop and Gigante Salmon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Gigante Salmon
The main advantage of trading using opposite Walker Dunlop and Gigante Salmon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Gigante Salmon 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 Gigante Salmon will offset losses from the drop in Gigante Salmon's long position.| Walker Dunlop vs. Mr Cooper Group | Walker Dunlop vs. Security National Financial | Walker Dunlop vs. Encore Capital Group | Walker Dunlop vs. Timbercreek Financial Corp |
| Gigante Salmon vs. Andfjord Salmon AS | Gigante Salmon vs. Salmon Evolution Holding | Gigante Salmon vs. Biofish Holding AS | Gigante Salmon vs. Nordic Aqua Partners |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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