Correlation Between Walker Dunlop and OC Oerlikon
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and OC Oerlikon 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 OC Oerlikon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and OC Oerlikon Corp, you can compare the effects of market volatilities on Walker Dunlop and OC Oerlikon 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 OC Oerlikon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and OC Oerlikon.
Diversification Opportunities for Walker Dunlop and OC Oerlikon
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Walker and OERL is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and OC Oerlikon Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OC Oerlikon Corp 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 OC Oerlikon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OC Oerlikon Corp has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and OC Oerlikon go up and down completely randomly.
Pair Corralation between Walker Dunlop and OC Oerlikon
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 1.33 times less return on investment than OC Oerlikon. But when comparing it to its historical volatility, Walker Dunlop is 1.02 times less risky than OC Oerlikon. It trades about 0.02 of its potential returns per unit of risk. OC Oerlikon Corp is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 349.00 in OC Oerlikon Corp on November 5, 2024 and sell it today you would earn a total of 18.00 from holding OC Oerlikon Corp or generate 5.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.59% |
| Values | Daily Returns |
Walker Dunlop vs. OC Oerlikon Corp
Performance |
| Timeline |
| Walker Dunlop |
| OC Oerlikon Corp |
Walker Dunlop and OC Oerlikon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and OC Oerlikon
The main advantage of trading using opposite Walker Dunlop and OC Oerlikon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, OC Oerlikon 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 OC Oerlikon will offset losses from the drop in OC Oerlikon'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 |
| OC Oerlikon vs. Sulzer AG | OC Oerlikon vs. Helvetia Holding AG | OC Oerlikon vs. Swiss Life Holding | OC Oerlikon vs. Adecco Group AG |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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