Correlation Between Walker Dunlop and Oxford Industries
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Oxford Industries 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 Oxford Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Oxford Industries, you can compare the effects of market volatilities on Walker Dunlop and Oxford Industries 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 Oxford Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Oxford Industries.
Diversification Opportunities for Walker Dunlop and Oxford Industries
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Walker and Oxford is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Oxford Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oxford Industries 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 Oxford Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oxford Industries has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Oxford Industries go up and down completely randomly.
Pair Corralation between Walker Dunlop and Oxford Industries
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 0.77 times more return on investment than Oxford Industries. However, Walker Dunlop is 1.3 times less risky than Oxford Industries. It trades about -0.02 of its potential returns per unit of risk. Oxford Industries is currently generating about -0.03 per unit of risk. If you would invest 11,290 in Walker Dunlop on August 30, 2024 and sell it today you would lose (208.00) from holding Walker Dunlop or give up 1.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walker Dunlop vs. Oxford Industries
Performance |
| Timeline |
| Walker Dunlop |
| Oxford Industries |
Walker Dunlop and Oxford Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Oxford Industries
The main advantage of trading using opposite Walker Dunlop and Oxford Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Oxford Industries 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 Oxford Industries will offset losses from the drop in Oxford Industries' long position.| Walker Dunlop vs. Velocity Financial Llc | Walker Dunlop vs. Security National Financial | Walker Dunlop vs. Encore Capital Group | Walker Dunlop vs. PennyMac Finl Svcs |
| Oxford Industries vs. G III Apparel Group | Oxford Industries vs. Ermenegildo Zegna NV | Oxford Industries vs. Kontoor Brands | Oxford Industries vs. Columbia Sportswear |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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