Correlation Between Walker Dunlop and Mainstay Floating
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Mainstay Floating 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 Floating 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 Floating Rate, you can compare the effects of market volatilities on Walker Dunlop and Mainstay Floating 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 Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Mainstay Floating.
Diversification Opportunities for Walker Dunlop and Mainstay Floating
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Walker and Mainstay is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Mainstay Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Floating Rate 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 Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Floating Rate has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Mainstay Floating go up and down completely randomly.
Pair Corralation between Walker Dunlop and Mainstay Floating
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 12.36 times more return on investment than Mainstay Floating. However, Walker Dunlop is 12.36 times more volatile than Mainstay Floating Rate. It trades about 0.03 of its potential returns per unit of risk. Mainstay Floating Rate is currently generating about 0.22 per unit of risk. If you would invest 8,189 in Walker Dunlop on November 9, 2024 and sell it today you would earn a total of 1,384 from holding Walker Dunlop or generate 16.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walker Dunlop vs. Mainstay Floating Rate
Performance |
| Timeline |
| Walker Dunlop |
| Mainstay Floating Rate |
Walker Dunlop and Mainstay Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Mainstay Floating
The main advantage of trading using opposite Walker Dunlop and Mainstay Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Mainstay Floating 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 Floating will offset losses from the drop in Mainstay Floating'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 Floating vs. Six Circles Credit | Mainstay Floating vs. Multi Manager High Yield | Mainstay Floating vs. Voya High Yield | Mainstay Floating vs. Jpmorgan 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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