Correlation Between Walker Dunlop and Champion Pacific
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Champion Pacific 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 Champion Pacific into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Champion Pacific Indonesia, you can compare the effects of market volatilities on Walker Dunlop and Champion Pacific 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 Champion Pacific. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Champion Pacific.
Diversification Opportunities for Walker Dunlop and Champion Pacific
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Walker and Champion is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Champion Pacific Indonesia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Champion Pacific Ind 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 Champion Pacific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Champion Pacific Ind has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Champion Pacific go up and down completely randomly.
Pair Corralation between Walker Dunlop and Champion Pacific
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 1.96 times more return on investment than Champion Pacific. However, Walker Dunlop is 1.96 times more volatile than Champion Pacific Indonesia. It trades about -0.01 of its potential returns per unit of risk. Champion Pacific Indonesia is currently generating about -0.02 per unit of risk. If you would invest 10,916 in Walker Dunlop on August 24, 2024 and sell it today you would lose (67.00) from holding Walker Dunlop or give up 0.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Walker Dunlop vs. Champion Pacific Indonesia
Performance |
| Timeline |
| Walker Dunlop |
| Champion Pacific Ind |
Walker Dunlop and Champion Pacific Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Champion Pacific
The main advantage of trading using opposite Walker Dunlop and Champion Pacific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Champion Pacific 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 Champion Pacific will offset losses from the drop in Champion Pacific'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 |
| Champion Pacific vs. Intanwijaya Internasional Tbk | Champion Pacific vs. Asiaplast Industries Tbk | Champion Pacific vs. Trias Sentosa Tbk | Champion Pacific vs. Lotte Chemical Titan |
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.
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