Correlation Between Walker Dunlop and Loncor Gold
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Loncor Gold 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 Loncor Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Loncor Gold, you can compare the effects of market volatilities on Walker Dunlop and Loncor Gold 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 Loncor Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Loncor Gold.
Diversification Opportunities for Walker Dunlop and Loncor Gold
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Walker and Loncor is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Loncor Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loncor Gold 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 Loncor Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Loncor Gold has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Loncor Gold go up and down completely randomly.
Pair Corralation between Walker Dunlop and Loncor Gold
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 1.09 times less return on investment than Loncor Gold. But when comparing it to its historical volatility, Walker Dunlop is 2.18 times less risky than Loncor Gold. It trades about 0.05 of its potential returns per unit of risk. Loncor Gold is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 26.00 in Loncor Gold on August 30, 2024 and sell it today you would earn a total of 0.00 from holding Loncor Gold or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 31.11% |
| Values | Daily Returns |
Walker Dunlop vs. Loncor Gold
Performance |
| Timeline |
| Walker Dunlop |
| Loncor Gold |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Walker Dunlop and Loncor Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Loncor Gold
The main advantage of trading using opposite Walker Dunlop and Loncor Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Loncor Gold 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 Loncor Gold will offset losses from the drop in Loncor Gold'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 |
| Loncor Gold vs. Galiano Gold | Loncor Gold vs. Brunswick Exploration | Loncor Gold vs. B2Gold Corp | Loncor Gold vs. Japan Gold Corp |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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