Correlation Between Walker Dunlop and PT Indofood
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and PT Indofood 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 PT Indofood into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and PT Indofood Sukses, you can compare the effects of market volatilities on Walker Dunlop and PT Indofood 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 PT Indofood. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and PT Indofood.
Diversification Opportunities for Walker Dunlop and PT Indofood
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Walker and ISM is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and PT Indofood Sukses in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Indofood Sukses 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 PT Indofood. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Indofood Sukses has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and PT Indofood go up and down completely randomly.
Pair Corralation between Walker Dunlop and PT Indofood
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 1.24 times less return on investment than PT Indofood. But when comparing it to its historical volatility, Walker Dunlop is 2.07 times less risky than PT Indofood. It trades about 0.07 of its potential returns per unit of risk. PT Indofood Sukses is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 36.00 in PT Indofood Sukses on August 25, 2024 and sell it today you would earn a total of 8.00 from holding PT Indofood Sukses or generate 22.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.81% |
| Values | Daily Returns |
Walker Dunlop vs. PT Indofood Sukses
Performance |
| Timeline |
| Walker Dunlop |
| PT Indofood Sukses |
Walker Dunlop and PT Indofood Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and PT Indofood
The main advantage of trading using opposite Walker Dunlop and PT Indofood positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, PT Indofood 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 PT Indofood will offset losses from the drop in PT Indofood'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 |
| PT Indofood vs. Superior Plus Corp | PT Indofood vs. NMI Holdings | PT Indofood vs. Origin Agritech | PT Indofood vs. SIVERS SEMICONDUCTORS AB |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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