Correlation Between Walker Dunlop and Lkcm Fixed
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Lkcm Fixed 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 Lkcm Fixed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Lkcm Fixed Income, you can compare the effects of market volatilities on Walker Dunlop and Lkcm Fixed 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 Lkcm Fixed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Lkcm Fixed.
Diversification Opportunities for Walker Dunlop and Lkcm Fixed
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Walker and Lkcm is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Lkcm Fixed Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lkcm Fixed Income 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 Lkcm Fixed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lkcm Fixed Income has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Lkcm Fixed go up and down completely randomly.
Pair Corralation between Walker Dunlop and Lkcm Fixed
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 10.52 times more return on investment than Lkcm Fixed. However, Walker Dunlop is 10.52 times more volatile than Lkcm Fixed Income. It trades about 0.05 of its potential returns per unit of risk. Lkcm Fixed Income is currently generating about 0.08 per unit of risk. If you would invest 7,629 in Walker Dunlop on August 30, 2024 and sell it today you would earn a total of 3,453 from holding Walker Dunlop or generate 45.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walker Dunlop vs. Lkcm Fixed Income
Performance |
| Timeline |
| Walker Dunlop |
| Lkcm Fixed Income |
Walker Dunlop and Lkcm Fixed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Lkcm Fixed
The main advantage of trading using opposite Walker Dunlop and Lkcm Fixed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Lkcm Fixed 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 Lkcm Fixed will offset losses from the drop in Lkcm Fixed'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 |
| Lkcm Fixed vs. Gmo Resources | Lkcm Fixed vs. Goldman Sachs Mlp | Lkcm Fixed vs. Firsthand Alternative Energy | Lkcm Fixed vs. Oil Gas Ultrasector |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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