Correlation Between Walker Dunlop and Mundus
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Mundus 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 Mundus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Mundus Group, you can compare the effects of market volatilities on Walker Dunlop and Mundus 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 Mundus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Mundus.
Diversification Opportunities for Walker Dunlop and Mundus
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Walker and Mundus is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Mundus Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mundus Group 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 Mundus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mundus Group has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Mundus go up and down completely randomly.
Pair Corralation between Walker Dunlop and Mundus
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 1.53 times less return on investment than Mundus. But when comparing it to its historical volatility, Walker Dunlop is 2.6 times less risky than Mundus. It trades about 0.05 of its potential returns per unit of risk. Mundus Group is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 0.05 in Mundus Group on November 5, 2024 and sell it today you would earn a total of 0.00 from holding Mundus Group or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
Walker Dunlop vs. Mundus Group
Performance |
| Timeline |
| Walker Dunlop |
| Mundus Group |
Walker Dunlop and Mundus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Mundus
The main advantage of trading using opposite Walker Dunlop and Mundus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Mundus 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 Mundus will offset losses from the drop in Mundus' 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 |
| Mundus vs. Absolute Health and | Mundus vs. Supurva Healthcare Group | Mundus vs. Alpha Wastewater | Mundus vs. CTR Investments Consulting |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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