Correlation Between Walker Dunlop and HK Electric
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and HK Electric 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 HK Electric into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and HK Electric Investments, you can compare the effects of market volatilities on Walker Dunlop and HK Electric 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 HK Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and HK Electric.
Diversification Opportunities for Walker Dunlop and HK Electric
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Walker and HKT is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and HK Electric Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HK Electric Investments 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 HK Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HK Electric Investments has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and HK Electric go up and down completely randomly.
Pair Corralation between Walker Dunlop and HK Electric
Allowing for the 90-day total investment horizon Walker Dunlop is expected to under-perform the HK Electric. In addition to that, Walker Dunlop is 1.87 times more volatile than HK Electric Investments. It trades about -0.01 of its total potential returns per unit of risk. HK Electric Investments is currently generating about 0.0 per unit of volatility. If you would invest 63.00 in HK Electric Investments on August 28, 2024 and sell it today you would earn a total of 0.00 from holding HK Electric Investments or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walker Dunlop vs. HK Electric Investments
Performance |
| Timeline |
| Walker Dunlop |
| HK Electric Investments |
Walker Dunlop and HK Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and HK Electric
The main advantage of trading using opposite Walker Dunlop and HK Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, HK Electric 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 HK Electric will offset losses from the drop in HK Electric'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 |
| HK Electric vs. Apple Inc | HK Electric vs. Apple Inc | HK Electric vs. Apple Inc | HK Electric vs. Apple 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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |