Correlation Between Walker Dunlop and Magnis Energy
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Magnis Energy 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 Magnis Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Magnis Energy Technologies, you can compare the effects of market volatilities on Walker Dunlop and Magnis Energy 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 Magnis Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Magnis Energy.
Diversification Opportunities for Walker Dunlop and Magnis Energy
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Walker and Magnis is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Magnis Energy Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Magnis Energy Techno 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 Magnis Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Magnis Energy Techno has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Magnis Energy go up and down completely randomly.
Pair Corralation between Walker Dunlop and Magnis Energy
Allowing for the 90-day total investment horizon Walker Dunlop is expected to under-perform the Magnis Energy. But the stock apears to be less risky and, when comparing its historical volatility, Walker Dunlop is 11.04 times less risky than Magnis Energy. The stock trades about -0.01 of its potential returns per unit of risk. The Magnis Energy Technologies is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 3.00 in Magnis Energy Technologies on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Magnis Energy Technologies or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Walker Dunlop vs. Magnis Energy Technologies
Performance |
| Timeline |
| Walker Dunlop |
| Magnis Energy Techno |
Walker Dunlop and Magnis Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Magnis Energy
The main advantage of trading using opposite Walker Dunlop and Magnis Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Magnis Energy 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 Magnis Energy will offset losses from the drop in Magnis Energy'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 |
| Magnis Energy vs. Novonix Ltd ADR | Magnis Energy vs. Ilika plc | Magnis Energy vs. FuelPositive Corp | Magnis Energy vs. Novonix |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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