Correlation Between Walker Dunlop and OSRAM LICHT
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and OSRAM LICHT 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 OSRAM LICHT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and OSRAM LICHT N, you can compare the effects of market volatilities on Walker Dunlop and OSRAM LICHT 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 OSRAM LICHT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and OSRAM LICHT.
Diversification Opportunities for Walker Dunlop and OSRAM LICHT
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Walker and OSRAM is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and OSRAM LICHT N in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OSRAM LICHT N 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 OSRAM LICHT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OSRAM LICHT N has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and OSRAM LICHT go up and down completely randomly.
Pair Corralation between Walker Dunlop and OSRAM LICHT
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 1.02 times less return on investment than OSRAM LICHT. In addition to that, Walker Dunlop is 10.99 times more volatile than OSRAM LICHT N. It trades about 0.02 of its total potential returns per unit of risk. OSRAM LICHT N is currently generating about 0.17 per unit of volatility. If you would invest 5,180 in OSRAM LICHT N on November 7, 2024 and sell it today you would earn a total of 40.00 from holding OSRAM LICHT N or generate 0.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 90.91% |
| Values | Daily Returns |
Walker Dunlop vs. OSRAM LICHT N
Performance |
| Timeline |
| Walker Dunlop |
| OSRAM LICHT N |
Walker Dunlop and OSRAM LICHT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and OSRAM LICHT
The main advantage of trading using opposite Walker Dunlop and OSRAM LICHT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, OSRAM LICHT 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 OSRAM LICHT will offset losses from the drop in OSRAM LICHT'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 |
| OSRAM LICHT vs. BII Railway Transportation | OSRAM LICHT vs. Gaztransport Technigaz SA | OSRAM LICHT vs. EVS Broadcast Equipment | OSRAM LICHT vs. Kaufman Broad SA |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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