Correlation Between Walker Dunlop and Lkcm Small
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Lkcm Small 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 Small 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 Small Cap, you can compare the effects of market volatilities on Walker Dunlop and Lkcm Small 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 Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Lkcm Small.
Diversification Opportunities for Walker Dunlop and Lkcm Small
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Walker and Lkcm is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Lkcm Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lkcm Small Cap 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 Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lkcm Small Cap has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Lkcm Small go up and down completely randomly.
Pair Corralation between Walker Dunlop and Lkcm Small
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 7.53 times less return on investment than Lkcm Small. In addition to that, Walker Dunlop is 1.05 times more volatile than Lkcm Small Cap. It trades about 0.05 of its total potential returns per unit of risk. Lkcm Small Cap is currently generating about 0.39 per unit of volatility. If you would invest 2,113 in Lkcm Small Cap on September 1, 2024 and sell it today you would earn a total of 277.00 from holding Lkcm Small Cap or generate 13.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Walker Dunlop vs. Lkcm Small Cap
Performance |
| Timeline |
| Walker Dunlop |
| Lkcm Small Cap |
Walker Dunlop and Lkcm Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Lkcm Small
The main advantage of trading using opposite Walker Dunlop and Lkcm Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Lkcm Small 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 Small will offset losses from the drop in Lkcm Small'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 Small vs. Lkcm Aquinas Catholic | Lkcm Small vs. Lkcm Equity Fund | Lkcm Small vs. Lkcm Fixed Income | Lkcm Small vs. Lkcm International Equity |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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