Correlation Between Walker Dunlop and Hartford Municipal
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Hartford Municipal 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 Hartford Municipal 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 Municipal, you can compare the effects of market volatilities on Walker Dunlop and Hartford Municipal 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 Hartford Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Hartford Municipal.
Diversification Opportunities for Walker Dunlop and Hartford Municipal
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Walker and Hartford is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and The Hartford Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on The Hartford Municipal 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 Hartford Municipal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of The Hartford Municipal has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Hartford Municipal go up and down completely randomly.
Pair Corralation between Walker Dunlop and Hartford Municipal
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 11.18 times more return on investment than Hartford Municipal. However, Walker Dunlop is 11.18 times more volatile than The Hartford Municipal. It trades about 0.11 of its potential returns per unit of risk. The Hartford Municipal is currently generating about 0.2 per unit of risk. If you would invest 6,194 in Walker Dunlop on August 25, 2024 and sell it today you would earn a total of 4,655 from holding Walker Dunlop or generate 75.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.63% |
| Values | Daily Returns |
Walker Dunlop vs. The Hartford Municipal
Performance |
| Timeline |
| Walker Dunlop |
| The Hartford Municipal |
Walker Dunlop and Hartford Municipal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Hartford Municipal
The main advantage of trading using opposite Walker Dunlop and Hartford Municipal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Hartford Municipal 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 Hartford Municipal will offset losses from the drop in Hartford Municipal'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 |
| Hartford Municipal vs. Franklin Emerging Market | Hartford Municipal vs. Rbc Bluebay Emerging | Hartford Municipal vs. Eagle Mlp Strategy | Hartford Municipal vs. Black Oak Emerging |
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 Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |