Correlation Between Walker Dunlop and HHG Capital
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and HHG Capital 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 HHG Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and HHG Capital Corp, you can compare the effects of market volatilities on Walker Dunlop and HHG Capital 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 HHG Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and HHG Capital.
Diversification Opportunities for Walker Dunlop and HHG Capital
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Walker and HHG is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and HHG Capital Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HHG Capital 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 HHG Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HHG Capital Corp has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and HHG Capital go up and down completely randomly.
Pair Corralation between Walker Dunlop and HHG Capital
If you would invest 10,870 in Walker Dunlop on September 1, 2024 and sell it today you would earn a total of 148.00 from holding Walker Dunlop or generate 1.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Walker Dunlop vs. HHG Capital Corp
Performance |
| Timeline |
| Walker Dunlop |
| HHG Capital Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Walker Dunlop and HHG Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and HHG Capital
The main advantage of trading using opposite Walker Dunlop and HHG Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, HHG Capital 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 HHG Capital will offset losses from the drop in HHG Capital'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 |
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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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