Correlation Between Walker Dunlop and Mainstay Winslow
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Mainstay Winslow 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 Mainstay Winslow into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Mainstay Winslow Large, you can compare the effects of market volatilities on Walker Dunlop and Mainstay Winslow 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 Mainstay Winslow. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Mainstay Winslow.
Diversification Opportunities for Walker Dunlop and Mainstay Winslow
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Walker and Mainstay is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Mainstay Winslow Large in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Winslow Large 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 Mainstay Winslow. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Winslow Large has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Mainstay Winslow go up and down completely randomly.
Pair Corralation between Walker Dunlop and Mainstay Winslow
Allowing for the 90-day total investment horizon Walker Dunlop is expected to under-perform the Mainstay Winslow. In addition to that, Walker Dunlop is 1.89 times more volatile than Mainstay Winslow Large. It trades about -0.42 of its total potential returns per unit of risk. Mainstay Winslow Large is currently generating about -0.03 per unit of volatility. If you would invest 909.00 in Mainstay Winslow Large on November 27, 2024 and sell it today you would lose (6.00) from holding Mainstay Winslow Large or give up 0.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walker Dunlop vs. Mainstay Winslow Large
Performance |
| Timeline |
| Walker Dunlop |
| Mainstay Winslow Large |
Walker Dunlop and Mainstay Winslow Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Mainstay Winslow
The main advantage of trading using opposite Walker Dunlop and Mainstay Winslow positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Mainstay Winslow 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 Mainstay Winslow will offset losses from the drop in Mainstay Winslow'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 |
| Mainstay Winslow vs. United Kingdom Small | Mainstay Winslow vs. Old Westbury Small | Mainstay Winslow vs. Transamerica International Small | Mainstay Winslow vs. Needham Small Cap |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |