Correlation Between Walker Dunlop and ISFELAG HF
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and ISFELAG HF 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 ISFELAG HF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and ISFELAG HF, you can compare the effects of market volatilities on Walker Dunlop and ISFELAG HF 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 ISFELAG HF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and ISFELAG HF.
Diversification Opportunities for Walker Dunlop and ISFELAG HF
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Walker and ISFELAG is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and ISFELAG HF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ISFELAG HF 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 ISFELAG HF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ISFELAG HF has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and ISFELAG HF go up and down completely randomly.
Pair Corralation between Walker Dunlop and ISFELAG HF
Allowing for the 90-day total investment horizon Walker Dunlop is expected to under-perform the ISFELAG HF. In addition to that, Walker Dunlop is 2.39 times more volatile than ISFELAG HF. It trades about -0.01 of its total potential returns per unit of risk. ISFELAG HF is currently generating about 0.04 per unit of volatility. If you would invest 15,200 in ISFELAG HF on August 29, 2024 and sell it today you would earn a total of 80.00 from holding ISFELAG HF or generate 0.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walker Dunlop vs. ISFELAG HF
Performance |
| Timeline |
| Walker Dunlop |
| ISFELAG HF |
Walker Dunlop and ISFELAG HF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and ISFELAG HF
The main advantage of trading using opposite Walker Dunlop and ISFELAG HF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, ISFELAG HF 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 ISFELAG HF will offset losses from the drop in ISFELAG HF'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 |
| ISFELAG HF vs. Alvotech | ISFELAG HF vs. Arion banki hf | ISFELAG HF vs. Icelandair Group hf | ISFELAG HF vs. slandsbanki hf |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |