Correlation Between Walker Dunlop and Imerys SA
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Imerys SA 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 Imerys SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Imerys SA, you can compare the effects of market volatilities on Walker Dunlop and Imerys SA 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 Imerys SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Imerys SA.
Diversification Opportunities for Walker Dunlop and Imerys SA
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Walker and Imerys is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Imerys SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Imerys SA 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 Imerys SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Imerys SA has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Imerys SA go up and down completely randomly.
Pair Corralation between Walker Dunlop and Imerys SA
Allowing for the 90-day total investment horizon Walker Dunlop is expected to under-perform the Imerys SA. But the stock apears to be less risky and, when comparing its historical volatility, Walker Dunlop is 1.22 times less risky than Imerys SA. The stock trades about -0.12 of its potential returns per unit of risk. The Imerys SA is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 2,954 in Imerys SA on October 26, 2024 and sell it today you would lose (202.00) from holding Imerys SA or give up 6.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 96.72% |
| Values | Daily Returns |
Walker Dunlop vs. Imerys SA
Performance |
| Timeline |
| Walker Dunlop |
| Imerys SA |
Walker Dunlop and Imerys SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Imerys SA
The main advantage of trading using opposite Walker Dunlop and Imerys SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Imerys SA 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 Imerys SA will offset losses from the drop in Imerys SA'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 |
| Imerys SA vs. Rubis SCA | Imerys SA vs. Eramet SA | Imerys SA vs. Nexity | Imerys SA vs. Compagnie de Saint Gobain |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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