Correlation Between Walker Dunlop and Paninvest Tbk
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Paninvest Tbk 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 Paninvest Tbk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Paninvest Tbk, you can compare the effects of market volatilities on Walker Dunlop and Paninvest Tbk 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 Paninvest Tbk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Paninvest Tbk.
Diversification Opportunities for Walker Dunlop and Paninvest Tbk
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Walker and Paninvest is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Paninvest Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Paninvest Tbk 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 Paninvest Tbk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Paninvest Tbk has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Paninvest Tbk go up and down completely randomly.
Pair Corralation between Walker Dunlop and Paninvest Tbk
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 0.96 times more return on investment than Paninvest Tbk. However, Walker Dunlop is 1.04 times less risky than Paninvest Tbk. It trades about 0.04 of its potential returns per unit of risk. Paninvest Tbk is currently generating about -0.01 per unit of risk. If you would invest 7,979 in Walker Dunlop on August 28, 2024 and sell it today you would earn a total of 3,270 from holding Walker Dunlop or generate 40.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.76% |
| Values | Daily Returns |
Walker Dunlop vs. Paninvest Tbk
Performance |
| Timeline |
| Walker Dunlop |
| Paninvest Tbk |
Walker Dunlop and Paninvest Tbk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Paninvest Tbk
The main advantage of trading using opposite Walker Dunlop and Paninvest Tbk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Paninvest Tbk 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 Paninvest Tbk will offset losses from the drop in Paninvest Tbk'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 |
| Paninvest Tbk vs. Panin Financial Tbk | Paninvest Tbk vs. Bank Pan Indonesia | Paninvest Tbk vs. Panin Sekuritas Tbk | Paninvest Tbk vs. Clipan Finance Indonesia |
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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