Correlation Between Walker Dunlop and Grupo Nacional
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Grupo Nacional 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 Grupo Nacional into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Grupo Nacional Provincial, you can compare the effects of market volatilities on Walker Dunlop and Grupo Nacional 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 Grupo Nacional. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Grupo Nacional.
Diversification Opportunities for Walker Dunlop and Grupo Nacional
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Walker and Grupo is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Grupo Nacional Provincial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Nacional Provincial 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 Grupo Nacional. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Nacional Provincial has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Grupo Nacional go up and down completely randomly.
Pair Corralation between Walker Dunlop and Grupo Nacional
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 0.64 times more return on investment than Grupo Nacional. However, Walker Dunlop is 1.57 times less risky than Grupo Nacional. It trades about 0.06 of its potential returns per unit of risk. Grupo Nacional Provincial is currently generating about -0.13 per unit of risk. If you would invest 10,435 in Walker Dunlop on September 3, 2024 and sell it today you would earn a total of 583.00 from holding Walker Dunlop or generate 5.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.31% |
| Values | Daily Returns |
Walker Dunlop vs. Grupo Nacional Provincial
Performance |
| Timeline |
| Walker Dunlop |
| Grupo Nacional Provincial |
Walker Dunlop and Grupo Nacional Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Grupo Nacional
The main advantage of trading using opposite Walker Dunlop and Grupo Nacional positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Grupo Nacional 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 Grupo Nacional will offset losses from the drop in Grupo Nacional'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 |
| Grupo Nacional vs. Samsung Electronics Co | Grupo Nacional vs. Taiwan Semiconductor Manufacturing | Grupo Nacional vs. JPMorgan Chase Co | Grupo Nacional vs. Bank of America |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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