Correlation Between Walker Dunlop and Harding Loevner
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Harding Loevner 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 Harding Loevner into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Harding Loevner Global, you can compare the effects of market volatilities on Walker Dunlop and Harding Loevner 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 Harding Loevner. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Harding Loevner.
Diversification Opportunities for Walker Dunlop and Harding Loevner
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Walker and HARDING is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Harding Loevner Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harding Loevner Global 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 Harding Loevner. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harding Loevner Global has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Harding Loevner go up and down completely randomly.
Pair Corralation between Walker Dunlop and Harding Loevner
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 1.81 times less return on investment than Harding Loevner. In addition to that, Walker Dunlop is 2.15 times more volatile than Harding Loevner Global. It trades about 0.05 of its total potential returns per unit of risk. Harding Loevner Global is currently generating about 0.19 per unit of volatility. If you would invest 4,365 in Harding Loevner Global on September 1, 2024 and sell it today you would earn a total of 131.00 from holding Harding Loevner Global or generate 3.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Walker Dunlop vs. Harding Loevner Global
Performance |
| Timeline |
| Walker Dunlop |
| Harding Loevner Global |
Walker Dunlop and Harding Loevner Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Harding Loevner
The main advantage of trading using opposite Walker Dunlop and Harding Loevner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Harding Loevner 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 Harding Loevner will offset losses from the drop in Harding Loevner'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 |
| Harding Loevner vs. Harding Loevner Global | Harding Loevner vs. Harding Loevner International | Harding Loevner vs. Invesco Disciplined Equity | Harding Loevner vs. Global Stock Fund |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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