Correlation Between Walker Dunlop and Pampa Energia
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Pampa Energia 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 Pampa Energia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Pampa Energia SA, you can compare the effects of market volatilities on Walker Dunlop and Pampa Energia 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 Pampa Energia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Pampa Energia.
Diversification Opportunities for Walker Dunlop and Pampa Energia
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Walker and Pampa is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Pampa Energia SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pampa Energia SA 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 Pampa Energia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pampa Energia SA has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Pampa Energia go up and down completely randomly.
Pair Corralation between Walker Dunlop and Pampa Energia
Allowing for the 90-day total investment horizon Walker Dunlop is expected to under-perform the Pampa Energia. But the stock apears to be less risky and, when comparing its historical volatility, Walker Dunlop is 1.02 times less risky than Pampa Energia. The stock trades about -0.07 of its potential returns per unit of risk. The Pampa Energia SA is currently generating about 0.56 of returns per unit of risk over similar time horizon. If you would invest 6,656 in Pampa Energia SA on August 24, 2024 and sell it today you would earn a total of 1,572 from holding Pampa Energia SA or generate 23.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walker Dunlop vs. Pampa Energia SA
Performance |
| Timeline |
| Walker Dunlop |
| Pampa Energia SA |
Walker Dunlop and Pampa Energia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Pampa Energia
The main advantage of trading using opposite Walker Dunlop and Pampa Energia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Pampa Energia 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 Pampa Energia will offset losses from the drop in Pampa Energia'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 |
| Pampa Energia vs. Grupo Financiero Galicia | Pampa Energia vs. Banco Macro SA | Pampa Energia vs. Empresa Distribuidora y | Pampa Energia vs. Transportadora de Gas |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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