Correlation Between Walker Dunlop and Halliburton
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Halliburton 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 Halliburton into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Halliburton, you can compare the effects of market volatilities on Walker Dunlop and Halliburton 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 Halliburton. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Halliburton.
Diversification Opportunities for Walker Dunlop and Halliburton
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Walker and Halliburton is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Halliburton in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Halliburton 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 Halliburton. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Halliburton has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Halliburton go up and down completely randomly.
Pair Corralation between Walker Dunlop and Halliburton
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 1.14 times more return on investment than Halliburton. However, Walker Dunlop is 1.14 times more volatile than Halliburton. It trades about 0.07 of its potential returns per unit of risk. Halliburton is currently generating about -0.02 per unit of risk. If you would invest 8,188 in Walker Dunlop on August 26, 2024 and sell it today you would earn a total of 2,661 from holding Walker Dunlop or generate 32.5% 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. Halliburton
Performance |
| Timeline |
| Walker Dunlop |
| Halliburton |
Walker Dunlop and Halliburton Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Halliburton
The main advantage of trading using opposite Walker Dunlop and Halliburton positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Halliburton 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 Halliburton will offset losses from the drop in Halliburton'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 |
| Halliburton vs. Baker Hughes Co | Halliburton vs. NOV Inc | Halliburton vs. Tenaris SA ADR | Halliburton vs. Weatherford International PLC |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |