Correlation Between Walker Dunlop and AIM ETF
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and AIM ETF 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 AIM ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and AIM ETF Products, you can compare the effects of market volatilities on Walker Dunlop and AIM ETF 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 AIM ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and AIM ETF.
Diversification Opportunities for Walker Dunlop and AIM ETF
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Walker and AIM is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and AIM ETF Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AIM ETF Products 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 AIM ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AIM ETF Products has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and AIM ETF go up and down completely randomly.
Pair Corralation between Walker Dunlop and AIM ETF
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 1.55 times less return on investment than AIM ETF. In addition to that, Walker Dunlop is 5.61 times more volatile than AIM ETF Products. It trades about 0.05 of its total potential returns per unit of risk. AIM ETF Products is currently generating about 0.42 per unit of volatility. If you would invest 3,438 in AIM ETF Products on September 1, 2024 and sell it today you would earn a total of 90.00 from holding AIM ETF Products or generate 2.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Walker Dunlop vs. AIM ETF Products
Performance |
| Timeline |
| Walker Dunlop |
| AIM ETF Products |
Walker Dunlop and AIM ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and AIM ETF
The main advantage of trading using opposite Walker Dunlop and AIM ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, AIM ETF 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 AIM ETF will offset losses from the drop in AIM ETF'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 |
| AIM ETF vs. AIM ETF Products | AIM ETF vs. AIM ETF Products | AIM ETF vs. AIM ETF Products | AIM ETF vs. AllianzIM Large Cap |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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