Correlation Between Walker Dunlop and KraneShares Trust
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and KraneShares Trust 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 KraneShares Trust into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and KraneShares Trust , you can compare the effects of market volatilities on Walker Dunlop and KraneShares Trust 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 KraneShares Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and KraneShares Trust.
Diversification Opportunities for Walker Dunlop and KraneShares Trust
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Walker and KraneShares is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and KraneShares Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KraneShares Trust 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 KraneShares Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KraneShares Trust has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and KraneShares Trust go up and down completely randomly.
Pair Corralation between Walker Dunlop and KraneShares Trust
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 0.97 times more return on investment than KraneShares Trust. However, Walker Dunlop is 1.03 times less risky than KraneShares Trust. It trades about 0.0 of its potential returns per unit of risk. KraneShares Trust is currently generating about -0.18 per unit of risk. If you would invest 11,127 in Walker Dunlop on August 30, 2024 and sell it today you would lose (45.00) from holding Walker Dunlop or give up 0.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Walker Dunlop vs. KraneShares Trust
Performance |
| Timeline |
| Walker Dunlop |
| KraneShares Trust |
Walker Dunlop and KraneShares Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and KraneShares Trust
The main advantage of trading using opposite Walker Dunlop and KraneShares Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, KraneShares Trust 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 KraneShares Trust will offset losses from the drop in KraneShares Trust'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 |
| KraneShares Trust vs. Tidal Trust II | KraneShares Trust vs. Tidal Trust II | KraneShares Trust vs. Tidal Trust II | KraneShares Trust vs. Tidal Trust II |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |