Correlation Between Walker Dunlop and Muncy Bank
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Muncy Bank 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 Muncy Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Muncy Bank Financial, you can compare the effects of market volatilities on Walker Dunlop and Muncy Bank 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 Muncy Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Muncy Bank.
Diversification Opportunities for Walker Dunlop and Muncy Bank
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Walker and Muncy is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Muncy Bank Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Muncy Bank Financial 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 Muncy Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Muncy Bank Financial has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Muncy Bank go up and down completely randomly.
Pair Corralation between Walker Dunlop and Muncy Bank
If you would invest 8,835 in Walker Dunlop on August 29, 2024 and sell it today you would earn a total of 2,221 from holding Walker Dunlop or generate 25.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.4% |
| Values | Daily Returns |
Walker Dunlop vs. Muncy Bank Financial
Performance |
| Timeline |
| Walker Dunlop |
| Muncy Bank Financial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Walker Dunlop and Muncy Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Muncy Bank
The main advantage of trading using opposite Walker Dunlop and Muncy Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Muncy Bank 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 Muncy Bank will offset losses from the drop in Muncy Bank'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 |
| Muncy Bank vs. Main Street Financial | Muncy Bank vs. Susquehanna Community Financial | Muncy Bank vs. First Keystone Corp | Muncy Bank vs. Mifflinburg Bancorp |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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