Correlation Between Walker Dunlop and New Age
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and New Age 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 New Age into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and New Age Metals, you can compare the effects of market volatilities on Walker Dunlop and New Age 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 New Age. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and New Age.
Diversification Opportunities for Walker Dunlop and New Age
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Walker and New is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and New Age Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New Age Metals 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 New Age. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New Age Metals has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and New Age go up and down completely randomly.
Pair Corralation between Walker Dunlop and New Age
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 0.21 times more return on investment than New Age. However, Walker Dunlop is 4.79 times less risky than New Age. It trades about 0.08 of its potential returns per unit of risk. New Age Metals is currently generating about -0.03 per unit of risk. If you would invest 9,481 in Walker Dunlop on August 29, 2024 and sell it today you would earn a total of 1,601 from holding Walker Dunlop or generate 16.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Walker Dunlop vs. New Age Metals
Performance |
| Timeline |
| Walker Dunlop |
| New Age Metals |
Walker Dunlop and New Age Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and New Age
The main advantage of trading using opposite Walker Dunlop and New Age positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, New Age 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 New Age will offset losses from the drop in New Age'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 |
| New Age vs. Stillwater Critical Minerals | New Age vs. Grid Metals Corp | New Age vs. Kore Mining | New Age vs. Imagine Lithium |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |