Correlation Between Walker Dunlop and Mfs International
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Mfs International 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 Mfs International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Mfs International Value, you can compare the effects of market volatilities on Walker Dunlop and Mfs International 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 Mfs International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Mfs International.
Diversification Opportunities for Walker Dunlop and Mfs International
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Walker and Mfs is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Mfs International Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs International Value 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 Mfs International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs International Value has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Mfs International go up and down completely randomly.
Pair Corralation between Walker Dunlop and Mfs International
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 1.09 times less return on investment than Mfs International. In addition to that, Walker Dunlop is 2.48 times more volatile than Mfs International Value. It trades about 0.1 of its total potential returns per unit of risk. Mfs International Value is currently generating about 0.26 per unit of volatility. If you would invest 3,564 in Mfs International Value on November 9, 2024 and sell it today you would earn a total of 162.00 from holding Mfs International Value or generate 4.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walker Dunlop vs. Mfs International Value
Performance |
| Timeline |
| Walker Dunlop |
| Mfs International Value |
Walker Dunlop and Mfs International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Mfs International
The main advantage of trading using opposite Walker Dunlop and Mfs International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Mfs International 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 Mfs International will offset losses from the drop in Mfs International'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 |
| Mfs International vs. Legg Mason Global | Mfs International vs. Barings Global Floating | Mfs International vs. Investec Global Franchise | Mfs International vs. Ab Global Bond |
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 Stocks Directory module to find actively traded stocks across global markets.
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