Correlation Between Walker Dunlop and Mainstay Large
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Mainstay Large 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 Large 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 Large Cap, you can compare the effects of market volatilities on Walker Dunlop and Mainstay Large 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 Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Mainstay Large.
Diversification Opportunities for Walker Dunlop and Mainstay Large
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Walker and Mainstay is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Mainstay Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Large Cap 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 Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Large Cap has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Mainstay Large go up and down completely randomly.
Pair Corralation between Walker Dunlop and Mainstay Large
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 3.36 times less return on investment than Mainstay Large. In addition to that, Walker Dunlop is 1.28 times more volatile than Mainstay Large Cap. It trades about 0.04 of its total potential returns per unit of risk. Mainstay Large Cap is currently generating about 0.18 per unit of volatility. If you would invest 1,373 in Mainstay Large Cap on August 28, 2024 and sell it today you would earn a total of 64.00 from holding Mainstay Large Cap or generate 4.66% 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. Mainstay Large Cap
Performance |
| Timeline |
| Walker Dunlop |
| Mainstay Large Cap |
Walker Dunlop and Mainstay Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Mainstay Large
The main advantage of trading using opposite Walker Dunlop and Mainstay Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Mainstay Large 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 Large will offset losses from the drop in Mainstay Large'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 Large vs. Mainstay Tax Free | Mainstay Large vs. Mainstay Large Cap | Mainstay Large vs. Mainstay Mackay High | Mainstay Large vs. Mainstay High Yield |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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