Correlation Between Walker Dunlop and MapsPeople
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and MapsPeople 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 MapsPeople into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and MapsPeople AS, you can compare the effects of market volatilities on Walker Dunlop and MapsPeople 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 MapsPeople. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and MapsPeople.
Diversification Opportunities for Walker Dunlop and MapsPeople
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Walker and MapsPeople is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and MapsPeople AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MapsPeople AS 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 MapsPeople. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MapsPeople AS has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and MapsPeople go up and down completely randomly.
Pair Corralation between Walker Dunlop and MapsPeople
Allowing for the 90-day total investment horizon Walker Dunlop is expected to under-perform the MapsPeople. But the stock apears to be less risky and, when comparing its historical volatility, Walker Dunlop is 3.18 times less risky than MapsPeople. The stock trades about -0.19 of its potential returns per unit of risk. The MapsPeople AS is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 115.00 in MapsPeople AS on November 21, 2024 and sell it today you would earn a total of 8.00 from holding MapsPeople AS or generate 6.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 97.37% |
| Values | Daily Returns |
Walker Dunlop vs. MapsPeople AS
Performance |
| Timeline |
| Walker Dunlop |
| MapsPeople AS |
Walker Dunlop and MapsPeople Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and MapsPeople
The main advantage of trading using opposite Walker Dunlop and MapsPeople positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, MapsPeople 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 MapsPeople will offset losses from the drop in MapsPeople'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 |
| MapsPeople vs. Penneo AS | MapsPeople vs. Orderyoyo AS | MapsPeople vs. FOM Technologies AS | MapsPeople vs. Shape Robotics AS |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |