Correlation Between Walker Dunlop and The Jensen
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and The Jensen 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 The Jensen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and The Jensen Portfolio, you can compare the effects of market volatilities on Walker Dunlop and The Jensen 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 The Jensen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and The Jensen.
Diversification Opportunities for Walker Dunlop and The Jensen
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Walker and The is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and The Jensen Portfolio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jensen Portfolio 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 The Jensen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jensen Portfolio has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and The Jensen go up and down completely randomly.
Pair Corralation between Walker Dunlop and The Jensen
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 0.69 times more return on investment than The Jensen. However, Walker Dunlop is 1.45 times less risky than The Jensen. It trades about -0.01 of its potential returns per unit of risk. The Jensen Portfolio is currently generating about -0.14 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 | 100.0% |
| Values | Daily Returns |
Walker Dunlop vs. The Jensen Portfolio
Performance |
| Timeline |
| Walker Dunlop |
| Jensen Portfolio |
Walker Dunlop and The Jensen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and The Jensen
The main advantage of trading using opposite Walker Dunlop and The Jensen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, The Jensen 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 The Jensen will offset losses from the drop in The Jensen'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 |
| The Jensen vs. The Jensen Portfolio | The Jensen vs. T Rowe Price | The Jensen vs. Champlain Mid Cap | The Jensen vs. Massachusetts Investors Growth |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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