Correlation Between Walker Dunlop and Northern Graphite
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Northern Graphite 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 Northern Graphite into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Northern Graphite, you can compare the effects of market volatilities on Walker Dunlop and Northern Graphite 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 Northern Graphite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Northern Graphite.
Diversification Opportunities for Walker Dunlop and Northern Graphite
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Walker and Northern is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Northern Graphite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northern Graphite 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 Northern Graphite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northern Graphite has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Northern Graphite go up and down completely randomly.
Pair Corralation between Walker Dunlop and Northern Graphite
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 0.29 times more return on investment than Northern Graphite. However, Walker Dunlop is 3.46 times less risky than Northern Graphite. It trades about 0.1 of its potential returns per unit of risk. Northern Graphite is currently generating about -0.1 per unit of risk. If you would invest 9,224 in Walker Dunlop on November 9, 2024 and sell it today you would earn a total of 349.00 from holding Walker Dunlop or generate 3.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walker Dunlop vs. Northern Graphite
Performance |
| Timeline |
| Walker Dunlop |
| Northern Graphite |
Walker Dunlop and Northern Graphite Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Northern Graphite
The main advantage of trading using opposite Walker Dunlop and Northern Graphite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Northern Graphite 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 Northern Graphite will offset losses from the drop in Northern Graphite'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 |
| Northern Graphite vs. Focus Graphite | Northern Graphite vs. Mason Graphite | Northern Graphite vs. Graphite One | Northern Graphite vs. Syrah Resources Limited |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |