Correlation Between Walker Dunlop and Hamilton Canadian
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Hamilton Canadian 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 Hamilton Canadian into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Hamilton Canadian Bank, you can compare the effects of market volatilities on Walker Dunlop and Hamilton Canadian 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 Hamilton Canadian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Hamilton Canadian.
Diversification Opportunities for Walker Dunlop and Hamilton Canadian
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Walker and Hamilton is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Hamilton Canadian Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hamilton Canadian Bank 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 Hamilton Canadian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hamilton Canadian Bank has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Hamilton Canadian go up and down completely randomly.
Pair Corralation between Walker Dunlop and Hamilton Canadian
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 3.83 times less return on investment than Hamilton Canadian. In addition to that, Walker Dunlop is 2.34 times more volatile than Hamilton Canadian Bank. It trades about 0.01 of its total potential returns per unit of risk. Hamilton Canadian Bank is currently generating about 0.11 per unit of volatility. If you would invest 1,508 in Hamilton Canadian Bank on November 27, 2024 and sell it today you would earn a total of 896.00 from holding Hamilton Canadian Bank or generate 59.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Walker Dunlop vs. Hamilton Canadian Bank
Performance |
| Timeline |
| Walker Dunlop |
| Hamilton Canadian Bank |
Walker Dunlop and Hamilton Canadian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Hamilton Canadian
The main advantage of trading using opposite Walker Dunlop and Hamilton Canadian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Hamilton Canadian 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 Hamilton Canadian will offset losses from the drop in Hamilton Canadian'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 |
| Hamilton Canadian vs. Hamilton Enhanced Canadian | Hamilton Canadian vs. Hamilton Enhanced Canadian | Hamilton Canadian vs. Hamilton Australian Bank | Hamilton Canadian vs. Hamilton Global Financials |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |