Correlation Between Walker Dunlop and Land Securities
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Land Securities 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 Land Securities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Land Securities Group, you can compare the effects of market volatilities on Walker Dunlop and Land Securities 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 Land Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Land Securities.
Diversification Opportunities for Walker Dunlop and Land Securities
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Walker and Land is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Land Securities Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Land Securities Group 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 Land Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Land Securities Group has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Land Securities go up and down completely randomly.
Pair Corralation between Walker Dunlop and Land Securities
Allowing for the 90-day total investment horizon Walker Dunlop is expected to under-perform the Land Securities. In addition to that, Walker Dunlop is 1.46 times more volatile than Land Securities Group. It trades about -0.28 of its total potential returns per unit of risk. Land Securities Group is currently generating about 0.29 per unit of volatility. If you would invest 697.00 in Land Securities Group on November 28, 2024 and sell it today you would earn a total of 57.00 from holding Land Securities Group or generate 8.18% 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. Land Securities Group
Performance |
| Timeline |
| Walker Dunlop |
| Land Securities Group |
Walker Dunlop and Land Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Land Securities
The main advantage of trading using opposite Walker Dunlop and Land Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Land Securities 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 Land Securities will offset losses from the drop in Land Securities' 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 |
| Land Securities vs. Land Securities Group | Land Securities vs. British Land | Land Securities vs. Taylor Wimpey PLC | Land Securities vs. Klpierre SA |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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