Correlation Between Walker Dunlop and Jeronimo Martins
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Jeronimo Martins 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 Jeronimo Martins into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Jeronimo Martins SGPS, you can compare the effects of market volatilities on Walker Dunlop and Jeronimo Martins 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 Jeronimo Martins. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Jeronimo Martins.
Diversification Opportunities for Walker Dunlop and Jeronimo Martins
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Walker and Jeronimo is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Jeronimo Martins SGPS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jeronimo Martins SGPS 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 Jeronimo Martins. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jeronimo Martins SGPS has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Jeronimo Martins go up and down completely randomly.
Pair Corralation between Walker Dunlop and Jeronimo Martins
Allowing for the 90-day total investment horizon Walker Dunlop is expected to under-perform the Jeronimo Martins. But the stock apears to be less risky and, when comparing its historical volatility, Walker Dunlop is 1.44 times less risky than Jeronimo Martins. The stock trades about 0.0 of its potential returns per unit of risk. The Jeronimo Martins SGPS is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 1,683 in Jeronimo Martins SGPS on August 29, 2024 and sell it today you would earn a total of 150.00 from holding Jeronimo Martins SGPS or generate 8.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walker Dunlop vs. Jeronimo Martins SGPS
Performance |
| Timeline |
| Walker Dunlop |
| Jeronimo Martins SGPS |
Walker Dunlop and Jeronimo Martins Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Jeronimo Martins
The main advantage of trading using opposite Walker Dunlop and Jeronimo Martins positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Jeronimo Martins 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 Jeronimo Martins will offset losses from the drop in Jeronimo Martins' 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 |
| Jeronimo Martins vs. Sonae SGPS SA | Jeronimo Martins vs. Galp Energia SGPS | Jeronimo Martins vs. EDP Energias | Jeronimo Martins vs. Altri SGPS SA |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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