Correlation Between Walker Dunlop and Integrated Micro
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Integrated Micro 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 Integrated Micro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Integrated Micro Electronics, you can compare the effects of market volatilities on Walker Dunlop and Integrated Micro 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 Integrated Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Integrated Micro.
Diversification Opportunities for Walker Dunlop and Integrated Micro
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Walker and Integrated is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Integrated Micro Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integrated Micro Ele 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 Integrated Micro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integrated Micro Ele has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Integrated Micro go up and down completely randomly.
Pair Corralation between Walker Dunlop and Integrated Micro
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 0.61 times more return on investment than Integrated Micro. However, Walker Dunlop is 1.65 times less risky than Integrated Micro. It trades about -0.01 of its potential returns per unit of risk. Integrated Micro Electronics is currently generating about -0.09 per unit of risk. If you would invest 11,120 in Walker Dunlop on August 29, 2024 and sell it today you would lose (64.00) from holding Walker Dunlop or give up 0.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Walker Dunlop vs. Integrated Micro Electronics
Performance |
| Timeline |
| Walker Dunlop |
| Integrated Micro Ele |
Walker Dunlop and Integrated Micro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Integrated Micro
The main advantage of trading using opposite Walker Dunlop and Integrated Micro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Integrated Micro 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 Integrated Micro will offset losses from the drop in Integrated Micro'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 |
| Integrated Micro vs. Allhome Corp | Integrated Micro vs. Jollibee Foods Corp | Integrated Micro vs. LFM Properties Corp | Integrated Micro vs. PXP Energy Corp |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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