Correlation Between Walker Dunlop and Aim Investment
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Aim Investment 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 Aim Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Aim Investment Secs, you can compare the effects of market volatilities on Walker Dunlop and Aim Investment 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 Aim Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Aim Investment.
Diversification Opportunities for Walker Dunlop and Aim Investment
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Walker and Aim is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Aim Investment Secs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aim Investment Secs 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 Aim Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aim Investment Secs has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Aim Investment go up and down completely randomly.
Pair Corralation between Walker Dunlop and Aim Investment
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 13.49 times more return on investment than Aim Investment. However, Walker Dunlop is 13.49 times more volatile than Aim Investment Secs. It trades about 0.07 of its potential returns per unit of risk. Aim Investment Secs is currently generating about 0.14 per unit of risk. If you would invest 8,069 in Walker Dunlop on August 24, 2024 and sell it today you would earn a total of 2,773 from holding Walker Dunlop or generate 34.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Walker Dunlop vs. Aim Investment Secs
Performance |
| Timeline |
| Walker Dunlop |
| Aim Investment Secs |
Walker Dunlop and Aim Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Aim Investment
The main advantage of trading using opposite Walker Dunlop and Aim Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Aim Investment 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 Aim Investment will offset losses from the drop in Aim Investment's long position.| Walker Dunlop vs. Encore Capital Group | Walker Dunlop vs. Federal Home Loan | Walker Dunlop vs. Federal National Mortgage | Walker Dunlop vs. CNFinance Holdings |
| Aim Investment vs. Counterpoint Tactical Municipal | Aim Investment vs. Baird Strategic Municipal | Aim Investment vs. Oklahoma Municipal Fund | Aim Investment vs. Ab Impact Municipal |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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