Correlation Between Walker Dunlop and SPDR SPASX
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and SPDR SPASX 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 SPDR SPASX into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and SPDR SPASX Australian, you can compare the effects of market volatilities on Walker Dunlop and SPDR SPASX 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 SPDR SPASX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and SPDR SPASX.
Diversification Opportunities for Walker Dunlop and SPDR SPASX
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Walker and SPDR is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and SPDR SPASX Australian in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR SPASX Australian 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 SPDR SPASX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR SPASX Australian has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and SPDR SPASX go up and down completely randomly.
Pair Corralation between Walker Dunlop and SPDR SPASX
Allowing for the 90-day total investment horizon Walker Dunlop is expected to under-perform the SPDR SPASX. In addition to that, Walker Dunlop is 5.66 times more volatile than SPDR SPASX Australian. It trades about 0.0 of its total potential returns per unit of risk. SPDR SPASX Australian is currently generating about 0.1 per unit of volatility. If you would invest 2,389 in SPDR SPASX Australian on August 29, 2024 and sell it today you would earn a total of 15.00 from holding SPDR SPASX Australian or generate 0.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walker Dunlop vs. SPDR SPASX Australian
Performance |
| Timeline |
| Walker Dunlop |
| SPDR SPASX Australian |
Walker Dunlop and SPDR SPASX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and SPDR SPASX
The main advantage of trading using opposite Walker Dunlop and SPDR SPASX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, SPDR SPASX 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 SPDR SPASX will offset losses from the drop in SPDR SPASX'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 |
| SPDR SPASX vs. SPDR SPASX 200 | SPDR SPASX vs. SPDR SPASX 50 | SPDR SPASX vs. SPDR MSCI World | SPDR SPASX vs. SPDR Dow Jones |
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 Stocks Directory module to find actively traded stocks across global markets.
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