Correlation Between Walker Dunlop and Paradigm Select
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Paradigm Select 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 Paradigm Select into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Paradigm Select Fund, you can compare the effects of market volatilities on Walker Dunlop and Paradigm Select 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 Paradigm Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Paradigm Select.
Diversification Opportunities for Walker Dunlop and Paradigm Select
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Walker and Paradigm is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Paradigm Select Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Paradigm Select 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 Paradigm Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Paradigm Select has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Paradigm Select go up and down completely randomly.
Pair Corralation between Walker Dunlop and Paradigm Select
Allowing for the 90-day total investment horizon Walker Dunlop is expected to under-perform the Paradigm Select. In addition to that, Walker Dunlop is 1.3 times more volatile than Paradigm Select Fund. It trades about -0.01 of its total potential returns per unit of risk. Paradigm Select Fund is currently generating about 0.24 per unit of volatility. If you would invest 7,945 in Paradigm Select Fund on August 29, 2024 and sell it today you would earn a total of 533.00 from holding Paradigm Select Fund or generate 6.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walker Dunlop vs. Paradigm Select Fund
Performance |
| Timeline |
| Walker Dunlop |
| Paradigm Select |
Walker Dunlop and Paradigm Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Paradigm Select
The main advantage of trading using opposite Walker Dunlop and Paradigm Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Paradigm Select 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 Paradigm Select will offset losses from the drop in Paradigm Select'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 |
| Paradigm Select vs. Paradigm Micro Cap Fund | Paradigm Select vs. Paradigm Value Fund | Paradigm Select vs. Needham Small Cap | Paradigm Select vs. Touchstone Mid Cap |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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