Correlation Between Walker Dunlop and NCBA GROUP
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and NCBA GROUP 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 NCBA GROUP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and NCBA GROUP PLC, you can compare the effects of market volatilities on Walker Dunlop and NCBA GROUP 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 NCBA GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and NCBA GROUP.
Diversification Opportunities for Walker Dunlop and NCBA GROUP
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Walker and NCBA is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and NCBA GROUP PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NCBA GROUP PLC 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 NCBA GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NCBA GROUP PLC has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and NCBA GROUP go up and down completely randomly.
Pair Corralation between Walker Dunlop and NCBA GROUP
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 0.62 times more return on investment than NCBA GROUP. However, Walker Dunlop is 1.62 times less risky than NCBA GROUP. It trades about 0.08 of its potential returns per unit of risk. NCBA GROUP PLC is currently generating about -0.04 per unit of risk. If you would invest 10,674 in Walker Dunlop on September 5, 2024 and sell it today you would earn a total of 242.00 from holding Walker Dunlop or generate 2.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walker Dunlop vs. NCBA GROUP PLC
Performance |
| Timeline |
| Walker Dunlop |
| NCBA GROUP PLC |
Walker Dunlop and NCBA GROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and NCBA GROUP
The main advantage of trading using opposite Walker Dunlop and NCBA GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, NCBA GROUP 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 NCBA GROUP will offset losses from the drop in NCBA GROUP's long position.| Walker Dunlop vs. Mr Cooper Group | Walker Dunlop vs. Security National Financial | Walker Dunlop vs. Encore Capital Group | Walker Dunlop vs. Timbercreek Financial Corp |
| NCBA GROUP vs. EQUITY GROUP HOLDINGS | NCBA GROUP vs. BRITISH AMERICAN TOBACCO | NCBA GROUP vs. CO OPERATIVE BANK OF | NCBA GROUP vs. ABSA NEW GOLD |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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