Correlation Between Walker Dunlop and Perdana Karya
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Perdana Karya 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 Perdana Karya into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Perdana Karya Perkasa, you can compare the effects of market volatilities on Walker Dunlop and Perdana Karya 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 Perdana Karya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Perdana Karya.
Diversification Opportunities for Walker Dunlop and Perdana Karya
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Walker and Perdana is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Perdana Karya Perkasa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perdana Karya Perkasa 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 Perdana Karya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Perdana Karya Perkasa has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Perdana Karya go up and down completely randomly.
Pair Corralation between Walker Dunlop and Perdana Karya
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 1.26 times more return on investment than Perdana Karya. However, Walker Dunlop is 1.26 times more volatile than Perdana Karya Perkasa. It trades about -0.02 of its potential returns per unit of risk. Perdana Karya Perkasa is currently generating about -0.08 per unit of risk. If you would invest 11,122 in Walker Dunlop on August 31, 2024 and sell it today you would lose (104.00) from holding Walker Dunlop or give up 0.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Walker Dunlop vs. Perdana Karya Perkasa
Performance |
| Timeline |
| Walker Dunlop |
| Perdana Karya Perkasa |
Walker Dunlop and Perdana Karya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Perdana Karya
The main advantage of trading using opposite Walker Dunlop and Perdana Karya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Perdana Karya 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 Perdana Karya will offset losses from the drop in Perdana Karya'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 |
| Perdana Karya vs. Radiant Utama Interinsco | Perdana Karya vs. Resource Alam Indonesia | Perdana Karya vs. Exploitasi Energi Indonesia | Perdana Karya vs. Asia Pacific Fibers |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |