Correlation Between Walker Dunlop and Grupa KTY
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Grupa KTY 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 Grupa KTY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Grupa KTY SA, you can compare the effects of market volatilities on Walker Dunlop and Grupa KTY 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 Grupa KTY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Grupa KTY.
Diversification Opportunities for Walker Dunlop and Grupa KTY
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Walker and Grupa is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Grupa KTY SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupa KTY SA 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 Grupa KTY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupa KTY SA has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Grupa KTY go up and down completely randomly.
Pair Corralation between Walker Dunlop and Grupa KTY
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 1.43 times less return on investment than Grupa KTY. In addition to that, Walker Dunlop is 1.25 times more volatile than Grupa KTY SA. It trades about 0.04 of its total potential returns per unit of risk. Grupa KTY SA is currently generating about 0.08 per unit of volatility. If you would invest 38,636 in Grupa KTY SA on September 11, 2024 and sell it today you would earn a total of 32,864 from holding Grupa KTY SA or generate 85.06% 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. Grupa KTY SA
Performance |
| Timeline |
| Walker Dunlop |
| Grupa KTY SA |
Walker Dunlop and Grupa KTY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Grupa KTY
The main advantage of trading using opposite Walker Dunlop and Grupa KTY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Grupa KTY 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 Grupa KTY will offset losses from the drop in Grupa KTY'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 |
| Grupa KTY vs. Asseco South Eastern | Grupa KTY vs. Vercom SA | Grupa KTY vs. CFI Holding SA | Grupa KTY vs. Gobarto 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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