Correlation Between Walker Dunlop and Hagar Hf
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Hagar Hf 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 Hagar Hf into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Hagar hf, you can compare the effects of market volatilities on Walker Dunlop and Hagar Hf 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 Hagar Hf. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Hagar Hf.
Diversification Opportunities for Walker Dunlop and Hagar Hf
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Walker and Hagar is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Hagar hf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hagar hf 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 Hagar Hf. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hagar hf has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Hagar Hf go up and down completely randomly.
Pair Corralation between Walker Dunlop and Hagar Hf
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 3.15 times less return on investment than Hagar Hf. In addition to that, Walker Dunlop is 1.41 times more volatile than Hagar hf. It trades about 0.05 of its total potential returns per unit of risk. Hagar hf is currently generating about 0.22 per unit of volatility. If you would invest 9,500 in Hagar hf on September 1, 2024 and sell it today you would earn a total of 500.00 from holding Hagar hf or generate 5.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Walker Dunlop vs. Hagar hf
Performance |
| Timeline |
| Walker Dunlop |
| Hagar hf |
Walker Dunlop and Hagar Hf Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Hagar Hf
The main advantage of trading using opposite Walker Dunlop and Hagar Hf positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Hagar Hf 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 Hagar Hf will offset losses from the drop in Hagar Hf'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 |
| Hagar Hf vs. Icelandair Group hf | Hagar Hf vs. Arion banki hf | Hagar Hf vs. Festi hf | Hagar Hf vs. Marel hf |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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