Correlation Between Walker Dunlop and LNA Sante
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and LNA Sante 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 LNA Sante into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and LNA Sante SA, you can compare the effects of market volatilities on Walker Dunlop and LNA Sante 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 LNA Sante. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and LNA Sante.
Diversification Opportunities for Walker Dunlop and LNA Sante
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Walker and LNA is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and LNA Sante SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LNA Sante 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 LNA Sante. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LNA Sante SA has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and LNA Sante go up and down completely randomly.
Pair Corralation between Walker Dunlop and LNA Sante
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 0.73 times more return on investment than LNA Sante. However, Walker Dunlop is 1.38 times less risky than LNA Sante. It trades about 0.05 of its potential returns per unit of risk. LNA Sante SA is currently generating about -0.04 per unit of risk. If you would invest 10,870 in Walker Dunlop on September 1, 2024 and sell it today you would earn a total of 148.00 from holding Walker Dunlop or generate 1.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Walker Dunlop vs. LNA Sante SA
Performance |
| Timeline |
| Walker Dunlop |
| LNA Sante SA |
Walker Dunlop and LNA Sante Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and LNA Sante
The main advantage of trading using opposite Walker Dunlop and LNA Sante positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, LNA Sante 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 LNA Sante will offset losses from the drop in LNA Sante'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 |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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