Correlation Between Walker Dunlop and JD Food
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and JD Food 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 JD Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and JD Food PCL, you can compare the effects of market volatilities on Walker Dunlop and JD Food 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 JD Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and JD Food.
Diversification Opportunities for Walker Dunlop and JD Food
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Walker and JDF is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and JD Food PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JD Food PCL 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 JD Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JD Food PCL has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and JD Food go up and down completely randomly.
Pair Corralation between Walker Dunlop and JD Food
Allowing for the 90-day total investment horizon Walker Dunlop is expected to under-perform the JD Food. But the stock apears to be less risky and, when comparing its historical volatility, Walker Dunlop is 1.22 times less risky than JD Food. The stock trades about -0.01 of its potential returns per unit of risk. The JD Food PCL is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 202.00 in JD Food PCL on August 29, 2024 and sell it today you would earn a total of 2.00 from holding JD Food PCL or generate 0.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Walker Dunlop vs. JD Food PCL
Performance |
| Timeline |
| Walker Dunlop |
| JD Food PCL |
Walker Dunlop and JD Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and JD Food
The main advantage of trading using opposite Walker Dunlop and JD Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, JD Food 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 JD Food will offset losses from the drop in JD Food'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 |
| JD Food vs. Carabao Group Public | JD Food vs. Jay Mart Public | JD Food vs. Gulf Energy Development | JD Food vs. KCE Electronics Public |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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