Correlation Between Walker Dunlop and Golan Plastic
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Golan Plastic 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 Golan Plastic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Golan Plastic, you can compare the effects of market volatilities on Walker Dunlop and Golan Plastic 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 Golan Plastic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Golan Plastic.
Diversification Opportunities for Walker Dunlop and Golan Plastic
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Walker and Golan is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Golan Plastic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golan Plastic 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 Golan Plastic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golan Plastic has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Golan Plastic go up and down completely randomly.
Pair Corralation between Walker Dunlop and Golan Plastic
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 6.03 times less return on investment than Golan Plastic. But when comparing it to its historical volatility, Walker Dunlop is 1.45 times less risky than Golan Plastic. It trades about 0.05 of its potential returns per unit of risk. Golan Plastic is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 91,430 in Golan Plastic on August 29, 2024 and sell it today you would earn a total of 22,970 from holding Golan Plastic or generate 25.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 71.88% |
| Values | Daily Returns |
Walker Dunlop vs. Golan Plastic
Performance |
| Timeline |
| Walker Dunlop |
| Golan Plastic |
Walker Dunlop and Golan Plastic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Golan Plastic
The main advantage of trading using opposite Walker Dunlop and Golan Plastic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Golan Plastic 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 Golan Plastic will offset losses from the drop in Golan Plastic'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 |
| Golan Plastic vs. Ormat Technologies | Golan Plastic vs. Multi Retail Group | Golan Plastic vs. Nova | Golan Plastic vs. B Communications |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |