Correlation Between Walker Dunlop and Kid ASA
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Kid ASA 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 Kid ASA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Kid ASA, you can compare the effects of market volatilities on Walker Dunlop and Kid ASA 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 Kid ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Kid ASA.
Diversification Opportunities for Walker Dunlop and Kid ASA
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Walker and Kid is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Kid ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kid ASA 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 Kid ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kid ASA has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Kid ASA go up and down completely randomly.
Pair Corralation between Walker Dunlop and Kid ASA
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 0.78 times more return on investment than Kid ASA. However, Walker Dunlop is 1.28 times less risky than Kid ASA. It trades about 0.06 of its potential returns per unit of risk. Kid ASA is currently generating about -0.11 per unit of risk. If you would invest 10,473 in Walker Dunlop on August 28, 2024 and sell it today you would earn a total of 583.00 from holding Walker Dunlop or generate 5.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.46% |
| Values | Daily Returns |
Walker Dunlop vs. Kid ASA
Performance |
| Timeline |
| Walker Dunlop |
| Kid ASA |
Walker Dunlop and Kid ASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Kid ASA
The main advantage of trading using opposite Walker Dunlop and Kid ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Kid ASA 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 Kid ASA will offset losses from the drop in Kid ASA'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 |
| Kid ASA vs. Europris ASA | Kid ASA vs. Selvaag Bolig ASA | Kid ASA vs. Storebrand ASA | Kid ASA vs. Kitron ASA |
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 Stocks Directory module to find actively traded stocks across global markets.
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