Correlation Between Walker Dunlop and Amundi ETF
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Amundi ETF 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 Amundi ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Amundi ETF PEA, you can compare the effects of market volatilities on Walker Dunlop and Amundi ETF 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 Amundi ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Amundi ETF.
Diversification Opportunities for Walker Dunlop and Amundi ETF
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Walker and Amundi is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Amundi ETF PEA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi ETF PEA 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 Amundi ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi ETF PEA has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Amundi ETF go up and down completely randomly.
Pair Corralation between Walker Dunlop and Amundi ETF
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 2.8 times more return on investment than Amundi ETF. However, Walker Dunlop is 2.8 times more volatile than Amundi ETF PEA. It trades about 0.08 of its potential returns per unit of risk. Amundi ETF PEA is currently generating about 0.16 per unit of risk. If you would invest 6,974 in Walker Dunlop on August 25, 2024 and sell it today you would earn a total of 3,875 from holding Walker Dunlop or generate 55.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.64% |
| Values | Daily Returns |
Walker Dunlop vs. Amundi ETF PEA
Performance |
| Timeline |
| Walker Dunlop |
| Amundi ETF PEA |
Walker Dunlop and Amundi ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Amundi ETF
The main advantage of trading using opposite Walker Dunlop and Amundi ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Amundi ETF 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 Amundi ETF will offset losses from the drop in Amundi ETF's long position.| Walker Dunlop vs. Encore Capital Group | Walker Dunlop vs. Federal Home Loan | Walker Dunlop vs. CNFinance Holdings | Walker Dunlop vs. Greystone Housing Impact |
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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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