Correlation Between Walker Dunlop and KION GROUP
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and KION GROUP 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 KION GROUP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and KION GROUP AG, you can compare the effects of market volatilities on Walker Dunlop and KION GROUP 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 KION GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and KION GROUP.
Diversification Opportunities for Walker Dunlop and KION GROUP
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Walker and KION is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and KION GROUP AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KION GROUP AG 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 KION GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KION GROUP AG has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and KION GROUP go up and down completely randomly.
Pair Corralation between Walker Dunlop and KION GROUP
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 0.77 times more return on investment than KION GROUP. However, Walker Dunlop is 1.3 times less risky than KION GROUP. It trades about 0.04 of its potential returns per unit of risk. KION GROUP AG is currently generating about 0.0 per unit of risk. If you would invest 10,350 in Walker Dunlop on September 12, 2024 and sell it today you would earn a total of 292.00 from holding Walker Dunlop or generate 2.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Walker Dunlop vs. KION GROUP AG
Performance |
| Timeline |
| Walker Dunlop |
| KION GROUP AG |
Walker Dunlop and KION GROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and KION GROUP
The main advantage of trading using opposite Walker Dunlop and KION GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, KION GROUP 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 KION GROUP will offset losses from the drop in KION GROUP'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 |
| KION GROUP vs. Caterpillar | KION GROUP vs. Deere Company | KION GROUP vs. Shyft Group | KION GROUP vs. Nikola Corp |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |