Correlation Between Walker Dunlop and Eagle Small
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Eagle Small 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 Eagle Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Eagle Small Cap, you can compare the effects of market volatilities on Walker Dunlop and Eagle Small 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 Eagle Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Eagle Small.
Diversification Opportunities for Walker Dunlop and Eagle Small
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Walker and Eagle is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Eagle Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Small Cap 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 Eagle Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Small Cap has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Eagle Small go up and down completely randomly.
Pair Corralation between Walker Dunlop and Eagle Small
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 5.11 times less return on investment than Eagle Small. In addition to that, Walker Dunlop is 1.06 times more volatile than Eagle Small Cap. It trades about 0.04 of its total potential returns per unit of risk. Eagle Small Cap is currently generating about 0.23 per unit of volatility. If you would invest 3,200 in Eagle Small Cap on August 28, 2024 and sell it today you would earn a total of 230.00 from holding Eagle Small Cap or generate 7.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walker Dunlop vs. Eagle Small Cap
Performance |
| Timeline |
| Walker Dunlop |
| Eagle Small Cap |
Walker Dunlop and Eagle Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Eagle Small
The main advantage of trading using opposite Walker Dunlop and Eagle Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Eagle Small 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 Eagle Small will offset losses from the drop in Eagle Small'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 |
| Eagle Small vs. Pioneer High Yield | Eagle Small vs. American Century High | Eagle Small vs. Multi Manager High Yield | Eagle Small vs. Pace High Yield |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Transaction History View history of all your transactions and understand their impact on performance |