Correlation Between Walker Dunlop and Hollysys Automation
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Hollysys Automation 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 Hollysys Automation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Hollysys Automation Technologies, you can compare the effects of market volatilities on Walker Dunlop and Hollysys Automation 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 Hollysys Automation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Hollysys Automation.
Diversification Opportunities for Walker Dunlop and Hollysys Automation
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Walker and Hollysys is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Hollysys Automation Technologi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hollysys Automation 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 Hollysys Automation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hollysys Automation has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Hollysys Automation go up and down completely randomly.
Pair Corralation between Walker Dunlop and Hollysys Automation
If you would invest 2,642 in Hollysys Automation Technologies on August 31, 2024 and sell it today you would earn a total of 0.00 from holding Hollysys Automation Technologies or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 2.27% |
| Values | Daily Returns |
Walker Dunlop vs. Hollysys Automation Technologi
Performance |
| Timeline |
| Walker Dunlop |
| Hollysys Automation |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Walker Dunlop and Hollysys Automation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Hollysys Automation
The main advantage of trading using opposite Walker Dunlop and Hollysys Automation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Hollysys Automation 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 Hollysys Automation will offset losses from the drop in Hollysys Automation'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 |
| Hollysys Automation vs. Huazhu Group | Hollysys Automation vs. VNET Group DRC | Hollysys Automation vs. Noah Holdings |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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