Correlation Between Walker Dunlop and INFICON Holding
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and INFICON Holding 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 INFICON Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and INFICON Holding AG, you can compare the effects of market volatilities on Walker Dunlop and INFICON Holding 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 INFICON Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and INFICON Holding.
Diversification Opportunities for Walker Dunlop and INFICON Holding
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Walker and INFICON is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and INFICON Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INFICON Holding AG 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 INFICON Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INFICON Holding AG has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and INFICON Holding go up and down completely randomly.
Pair Corralation between Walker Dunlop and INFICON Holding
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 0.2 times more return on investment than INFICON Holding. However, Walker Dunlop is 4.98 times less risky than INFICON Holding. It trades about -0.06 of its potential returns per unit of risk. INFICON Holding AG is currently generating about -0.21 per unit of risk. If you would invest 10,953 in Walker Dunlop on September 13, 2024 and sell it today you would lose (211.00) from holding Walker Dunlop or give up 1.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Walker Dunlop vs. INFICON Holding AG
Performance |
| Timeline |
| Walker Dunlop |
| INFICON Holding AG |
Walker Dunlop and INFICON Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and INFICON Holding
The main advantage of trading using opposite Walker Dunlop and INFICON Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, INFICON Holding 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 INFICON Holding will offset losses from the drop in INFICON Holding'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 |
| INFICON Holding vs. Copa Holdings SA | INFICON Holding vs. United Airlines Holdings | INFICON Holding vs. Delta Air Lines | INFICON Holding vs. SkyWest |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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