Correlation Between Walker Dunlop and Themac Resources
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Themac Resources 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 Themac Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Themac Resources Group, you can compare the effects of market volatilities on Walker Dunlop and Themac Resources 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 Themac Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Themac Resources.
Diversification Opportunities for Walker Dunlop and Themac Resources
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Walker and Themac is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Themac Resources Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Themac Resources 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 Themac Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Themac Resources has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Themac Resources go up and down completely randomly.
Pair Corralation between Walker Dunlop and Themac Resources
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 42.66 times less return on investment than Themac Resources. But when comparing it to its historical volatility, Walker Dunlop is 9.52 times less risky than Themac Resources. It trades about 0.05 of its potential returns per unit of risk. Themac Resources Group is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 2.50 in Themac Resources Group on September 1, 2024 and sell it today you would earn a total of 1.70 from holding Themac Resources Group or generate 68.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walker Dunlop vs. Themac Resources Group
Performance |
| Timeline |
| Walker Dunlop |
| Themac Resources |
Walker Dunlop and Themac Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Themac Resources
The main advantage of trading using opposite Walker Dunlop and Themac Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Themac Resources 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 Themac Resources will offset losses from the drop in Themac Resources' 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 |
| Themac Resources vs. South32 Limited | Themac Resources vs. NioCorp Developments Ltd | Themac Resources vs. HUMANA INC | Themac Resources vs. SCOR PK |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |