Correlation Between Walker Dunlop and Hexo Corp
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Hexo Corp 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 Hexo Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Hexo Corp, you can compare the effects of market volatilities on Walker Dunlop and Hexo Corp 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 Hexo Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Hexo Corp.
Diversification Opportunities for Walker Dunlop and Hexo Corp
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Walker and Hexo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Hexo Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hexo Corp 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 Hexo Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hexo Corp has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Hexo Corp go up and down completely randomly.
Pair Corralation between Walker Dunlop and Hexo Corp
If you would invest (100.00) in Hexo Corp on January 8, 2025 and sell it today you would earn a total of 100.00 from holding Hexo Corp or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Walker Dunlop vs. Hexo Corp
Performance |
| Timeline |
| Walker Dunlop |
| Hexo Corp |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Walker Dunlop and Hexo Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Hexo Corp
The main advantage of trading using opposite Walker Dunlop and Hexo Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Hexo Corp 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 Hexo Corp will offset losses from the drop in Hexo Corp'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 |
| Hexo Corp vs. Aurora Cannabis | Hexo Corp vs. Canopy Growth Corp | Hexo Corp vs. Curaleaf Holdings | Hexo Corp vs. OrganiGram Holdings |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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