Correlation Between Walker Dunlop and Ladenburg Growth
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Ladenburg Growth 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 Ladenburg Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Ladenburg Growth, you can compare the effects of market volatilities on Walker Dunlop and Ladenburg Growth 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 Ladenburg Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Ladenburg Growth.
Diversification Opportunities for Walker Dunlop and Ladenburg Growth
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Walker and Ladenburg is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Ladenburg Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ladenburg Growth 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 Ladenburg Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ladenburg Growth has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Ladenburg Growth go up and down completely randomly.
Pair Corralation between Walker Dunlop and Ladenburg Growth
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 1.83 times less return on investment than Ladenburg Growth. In addition to that, Walker Dunlop is 2.15 times more volatile than Ladenburg Growth. It trades about 0.01 of its total potential returns per unit of risk. Ladenburg Growth is currently generating about 0.05 per unit of volatility. If you would invest 1,547 in Ladenburg Growth on November 9, 2024 and sell it today you would earn a total of 157.00 from holding Ladenburg Growth or generate 10.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walker Dunlop vs. Ladenburg Growth
Performance |
| Timeline |
| Walker Dunlop |
| Ladenburg Growth |
Walker Dunlop and Ladenburg Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Ladenburg Growth
The main advantage of trading using opposite Walker Dunlop and Ladenburg Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Ladenburg Growth 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 Ladenburg Growth will offset losses from the drop in Ladenburg Growth'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 |
| Ladenburg Growth vs. Ab Discovery Value | Ladenburg Growth vs. Great West Loomis Sayles | Ladenburg Growth vs. Ab Small Cap | Ladenburg Growth vs. William Blair Small |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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