Correlation Between Walker Dunlop and Hemisphere Energy
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Hemisphere Energy 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 Hemisphere Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Hemisphere Energy, you can compare the effects of market volatilities on Walker Dunlop and Hemisphere Energy 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 Hemisphere Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Hemisphere Energy.
Diversification Opportunities for Walker Dunlop and Hemisphere Energy
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Walker and Hemisphere is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Hemisphere Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hemisphere Energy 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 Hemisphere Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hemisphere Energy has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Hemisphere Energy go up and down completely randomly.
Pair Corralation between Walker Dunlop and Hemisphere Energy
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 1.34 times less return on investment than Hemisphere Energy. In addition to that, Walker Dunlop is 1.19 times more volatile than Hemisphere Energy. It trades about 0.04 of its total potential returns per unit of risk. Hemisphere Energy is currently generating about 0.06 per unit of volatility. If you would invest 117.00 in Hemisphere Energy on August 24, 2024 and sell it today you would earn a total of 71.00 from holding Hemisphere Energy or generate 60.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Walker Dunlop vs. Hemisphere Energy
Performance |
| Timeline |
| Walker Dunlop |
| Hemisphere Energy |
Walker Dunlop and Hemisphere Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Hemisphere Energy
The main advantage of trading using opposite Walker Dunlop and Hemisphere Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Hemisphere Energy 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 Hemisphere Energy will offset losses from the drop in Hemisphere Energy's long position.| Walker Dunlop vs. Encore Capital Group | Walker Dunlop vs. Federal Home Loan | Walker Dunlop vs. CNFinance Holdings | Walker Dunlop vs. Greystone Housing Impact |
| Hemisphere Energy vs. Trican Well Service | Hemisphere Energy vs. Ensign Energy Services | Hemisphere Energy vs. Calfrac Well Services | Hemisphere Energy vs. Birchcliff Energy |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |