Correlation Between Walker Dunlop and ProShares UltraShort
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and ProShares UltraShort 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 ProShares UltraShort into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and ProShares UltraShort Gold, you can compare the effects of market volatilities on Walker Dunlop and ProShares UltraShort 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 ProShares UltraShort. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and ProShares UltraShort.
Diversification Opportunities for Walker Dunlop and ProShares UltraShort
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Walker and ProShares is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and ProShares UltraShort Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares UltraShort Gold 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 ProShares UltraShort. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares UltraShort Gold has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and ProShares UltraShort go up and down completely randomly.
Pair Corralation between Walker Dunlop and ProShares UltraShort
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 0.91 times more return on investment than ProShares UltraShort. However, Walker Dunlop is 1.1 times less risky than ProShares UltraShort. It trades about 0.08 of its potential returns per unit of risk. ProShares UltraShort Gold is currently generating about -0.08 per unit of risk. If you would invest 9,351 in Walker Dunlop on August 31, 2024 and sell it today you would earn a total of 1,667 from holding Walker Dunlop or generate 17.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walker Dunlop vs. ProShares UltraShort Gold
Performance |
| Timeline |
| Walker Dunlop |
| ProShares UltraShort Gold |
Walker Dunlop and ProShares UltraShort Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and ProShares UltraShort
The main advantage of trading using opposite Walker Dunlop and ProShares UltraShort positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, ProShares UltraShort 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 ProShares UltraShort will offset losses from the drop in ProShares UltraShort'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 |
| ProShares UltraShort vs. ProShares UltraShort Bloomberg | ProShares UltraShort vs. ProShares UltraShort Silver | ProShares UltraShort vs. MicroSectors Gold Miners | ProShares UltraShort vs. UBS ETRACS |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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