Correlation Between Walker Dunlop and Putra Mandiri
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Putra Mandiri 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 Putra Mandiri into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Putra Mandiri Jembar, you can compare the effects of market volatilities on Walker Dunlop and Putra Mandiri 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 Putra Mandiri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Putra Mandiri.
Diversification Opportunities for Walker Dunlop and Putra Mandiri
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Walker and Putra is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Putra Mandiri Jembar in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Putra Mandiri Jembar 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 Putra Mandiri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Putra Mandiri Jembar has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Putra Mandiri go up and down completely randomly.
Pair Corralation between Walker Dunlop and Putra Mandiri
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 0.38 times more return on investment than Putra Mandiri. However, Walker Dunlop is 2.62 times less risky than Putra Mandiri. It trades about 0.05 of its potential returns per unit of risk. Putra Mandiri Jembar is currently generating about -0.14 per unit of risk. If you would invest 10,870 in Walker Dunlop on September 1, 2024 and sell it today you would earn a total of 148.00 from holding Walker Dunlop or generate 1.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Walker Dunlop vs. Putra Mandiri Jembar
Performance |
| Timeline |
| Walker Dunlop |
| Putra Mandiri Jembar |
Walker Dunlop and Putra Mandiri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Putra Mandiri
The main advantage of trading using opposite Walker Dunlop and Putra Mandiri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Putra Mandiri 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 Putra Mandiri will offset losses from the drop in Putra Mandiri'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 |
| Putra Mandiri vs. Adaro Minerals Indonesia | Putra Mandiri vs. Dharma Polimetal Tbk | Putra Mandiri vs. Wir Asia Tbk | Putra Mandiri vs. Adi Sarana Armada |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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