Correlation Between Walker Dunlop and Infinity Bank
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Infinity Bank 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 Infinity Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Infinity Bank, you can compare the effects of market volatilities on Walker Dunlop and Infinity Bank 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 Infinity Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Infinity Bank.
Diversification Opportunities for Walker Dunlop and Infinity Bank
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Walker and Infinity is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Infinity Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Infinity Bank 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 Infinity Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Infinity Bank has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Infinity Bank go up and down completely randomly.
Pair Corralation between Walker Dunlop and Infinity Bank
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 14.97 times less return on investment than Infinity Bank. In addition to that, Walker Dunlop is 3.02 times more volatile than Infinity Bank. It trades about 0.01 of its total potential returns per unit of risk. Infinity Bank is currently generating about 0.32 per unit of volatility. If you would invest 955.00 in Infinity Bank on December 11, 2024 and sell it today you would earn a total of 85.00 from holding Infinity Bank or generate 8.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walker Dunlop vs. Infinity Bank
Performance |
| Timeline |
| Walker Dunlop |
| Infinity Bank |
Walker Dunlop and Infinity Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Infinity Bank
The main advantage of trading using opposite Walker Dunlop and Infinity Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Infinity Bank 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 Infinity Bank will offset losses from the drop in Infinity Bank'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 |
| Infinity Bank vs. Bank Mandiri Persero | Infinity Bank vs. Century Financial Corp | Infinity Bank vs. Bank of Botetourt | Infinity Bank vs. FS Bancorp |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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