Correlation Between Walker Dunlop and Matthews Asia
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Matthews Asia 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 Matthews Asia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Matthews Asia Growth, you can compare the effects of market volatilities on Walker Dunlop and Matthews Asia 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 Matthews Asia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Matthews Asia.
Diversification Opportunities for Walker Dunlop and Matthews Asia
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Walker and Matthews is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Matthews Asia Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Matthews Asia Growth 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 Matthews Asia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Matthews Asia Growth has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Matthews Asia go up and down completely randomly.
Pair Corralation between Walker Dunlop and Matthews Asia
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 1.08 times less return on investment than Matthews Asia. In addition to that, Walker Dunlop is 2.16 times more volatile than Matthews Asia Growth. It trades about 0.01 of its total potential returns per unit of risk. Matthews Asia Growth is currently generating about 0.03 per unit of volatility. If you would invest 2,050 in Matthews Asia Growth on November 27, 2024 and sell it today you would earn a total of 245.00 from holding Matthews Asia Growth or generate 11.95% 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. Matthews Asia Growth
Performance |
| Timeline |
| Walker Dunlop |
| Matthews Asia Growth |
Walker Dunlop and Matthews Asia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Matthews Asia
The main advantage of trading using opposite Walker Dunlop and Matthews Asia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Matthews Asia 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 Matthews Asia will offset losses from the drop in Matthews Asia'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 |
| Matthews Asia vs. Matthews Asia Innovators | Matthews Asia vs. Matthews Japan Fund | Matthews Asia vs. Matthews Pacific Tiger | Matthews Asia vs. Matthews Asian Growth |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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