Correlation Between Walker Dunlop and PING
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and PING 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 PING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and PING, you can compare the effects of market volatilities on Walker Dunlop and PING 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 PING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and PING.
Diversification Opportunities for Walker Dunlop and PING
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Walker and PING is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and PING in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PING 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 PING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PING has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and PING go up and down completely randomly.
Pair Corralation between Walker Dunlop and PING
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 3.85 times less return on investment than PING. But when comparing it to its historical volatility, Walker Dunlop is 1.34 times less risky than PING. It trades about 0.05 of its potential returns per unit of risk. PING is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 3.29 in PING on August 30, 2024 and sell it today you would earn a total of 2.43 from holding PING or generate 73.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 32.73% |
| Values | Daily Returns |
Walker Dunlop vs. PING
Performance |
| Timeline |
| Walker Dunlop |
| PING |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Walker Dunlop and PING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and PING
The main advantage of trading using opposite Walker Dunlop and PING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, PING 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 PING will offset losses from the drop in PING'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 |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |