Correlation Between Walker Dunlop and AEye
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and AEye 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 AEye into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and AEye Inc, you can compare the effects of market volatilities on Walker Dunlop and AEye 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 AEye. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and AEye.
Diversification Opportunities for Walker Dunlop and AEye
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Walker and AEye is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and AEye Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AEye Inc 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 AEye. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AEye Inc has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and AEye go up and down completely randomly.
Pair Corralation between Walker Dunlop and AEye
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 47.53 times less return on investment than AEye. But when comparing it to its historical volatility, Walker Dunlop is 14.67 times less risky than AEye. It trades about 0.05 of its potential returns per unit of risk. AEye Inc is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 0.90 in AEye Inc on September 1, 2024 and sell it today you would earn a total of 0.30 from holding AEye Inc or generate 33.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walker Dunlop vs. AEye Inc
Performance |
| Timeline |
| Walker Dunlop |
| AEye Inc |
Walker Dunlop and AEye Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and AEye
The main advantage of trading using opposite Walker Dunlop and AEye positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, AEye 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 AEye will offset losses from the drop in AEye'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 |
| AEye vs. Faraday Future Intelligent | AEye vs. Innoviz Technologies | AEye vs. Aeye Inc | AEye vs. Xos Equity Warrants |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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