Correlation Between Walker Dunlop and The Hartford
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and The Hartford 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 The Hartford into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and The Hartford Growth, you can compare the effects of market volatilities on Walker Dunlop and The Hartford 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 The Hartford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and The Hartford.
Diversification Opportunities for Walker Dunlop and The Hartford
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Walker and The is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and The Hartford Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Growth 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 The Hartford. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Growth has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and The Hartford go up and down completely randomly.
Pair Corralation between Walker Dunlop and The Hartford
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 1.05 times less return on investment than The Hartford. In addition to that, Walker Dunlop is 1.74 times more volatile than The Hartford Growth. It trades about 0.06 of its total potential returns per unit of risk. The Hartford Growth is currently generating about 0.11 per unit of volatility. If you would invest 3,716 in The Hartford Growth on August 31, 2024 and sell it today you would earn a total of 2,132 from holding The Hartford Growth or generate 57.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walker Dunlop vs. The Hartford Growth
Performance |
| Timeline |
| Walker Dunlop |
| Hartford Growth |
Walker Dunlop and The Hartford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and The Hartford
The main advantage of trading using opposite Walker Dunlop and The Hartford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, The Hartford 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 The Hartford will offset losses from the drop in The Hartford'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 |
| The Hartford vs. Europacific Growth Fund | The Hartford vs. Washington Mutual Investors | The Hartford vs. Capital World Growth | The Hartford vs. HUMANA INC |
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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