Correlation Between Walker Dunlop and Nordea Bank
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Nordea 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 Nordea 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 Nordea Bank Abp, you can compare the effects of market volatilities on Walker Dunlop and Nordea 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 Nordea Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Nordea Bank.
Diversification Opportunities for Walker Dunlop and Nordea Bank
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Walker and Nordea is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Nordea Bank Abp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nordea Bank Abp 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 Nordea Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nordea Bank Abp has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Nordea Bank go up and down completely randomly.
Pair Corralation between Walker Dunlop and Nordea Bank
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 1.3 times more return on investment than Nordea Bank. However, Walker Dunlop is 1.3 times more volatile than Nordea Bank Abp. It trades about 0.05 of its potential returns per unit of risk. Nordea Bank Abp is currently generating about -0.18 per unit of risk. If you would invest 10,870 in Walker Dunlop on September 1, 2024 and sell it today you would earn a total of 148.00 from holding Walker Dunlop or generate 1.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walker Dunlop vs. Nordea Bank Abp
Performance |
| Timeline |
| Walker Dunlop |
| Nordea Bank Abp |
Walker Dunlop and Nordea Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Nordea Bank
The main advantage of trading using opposite Walker Dunlop and Nordea Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Nordea 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 Nordea Bank will offset losses from the drop in Nordea 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 |
| Nordea Bank vs. Piraeus Bank SA | Nordea Bank vs. Turkiye Garanti Bankasi | Nordea Bank vs. Delhi Bank Corp | Nordea Bank vs. Uwharrie Capital Corp |
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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