Correlation Between Walker Dunlop and GSD Holding
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and GSD Holding 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 GSD Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and GSD Holding AS, you can compare the effects of market volatilities on Walker Dunlop and GSD Holding 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 GSD Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and GSD Holding.
Diversification Opportunities for Walker Dunlop and GSD Holding
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Walker and GSD is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and GSD Holding AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GSD Holding 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 GSD Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GSD Holding AS has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and GSD Holding go up and down completely randomly.
Pair Corralation between Walker Dunlop and GSD Holding
Allowing for the 90-day total investment horizon Walker Dunlop is expected to under-perform the GSD Holding. But the stock apears to be less risky and, when comparing its historical volatility, Walker Dunlop is 1.07 times less risky than GSD Holding. The stock trades about -0.16 of its potential returns per unit of risk. The GSD Holding AS is currently generating about 0.4 of returns per unit of risk over similar time horizon. If you would invest 345.00 in GSD Holding AS on August 25, 2024 and sell it today you would earn a total of 46.00 from holding GSD Holding AS or generate 13.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Walker Dunlop vs. GSD Holding AS
Performance |
| Timeline |
| Walker Dunlop |
| GSD Holding AS |
Walker Dunlop and GSD Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and GSD Holding
The main advantage of trading using opposite Walker Dunlop and GSD Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, GSD Holding 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 GSD Holding will offset losses from the drop in GSD Holding's long position.| Walker Dunlop vs. Encore Capital Group | Walker Dunlop vs. Federal Home Loan | Walker Dunlop vs. CNFinance Holdings | Walker Dunlop vs. Greystone Housing Impact |
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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 Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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