Correlation Between Walker Dunlop and Polen International
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Polen International 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 Polen International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Polen International Growth, you can compare the effects of market volatilities on Walker Dunlop and Polen International 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 Polen International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Polen International.
Diversification Opportunities for Walker Dunlop and Polen International
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Walker and Polen is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Polen International Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Polen International 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 Polen International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Polen International has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Polen International go up and down completely randomly.
Pair Corralation between Walker Dunlop and Polen International
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 2.35 times more return on investment than Polen International. However, Walker Dunlop is 2.35 times more volatile than Polen International Growth. It trades about 0.06 of its potential returns per unit of risk. Polen International Growth is currently generating about 0.03 per unit of risk. If you would invest 7,595 in Walker Dunlop on September 2, 2024 and sell it today you would earn a total of 3,423 from holding Walker Dunlop or generate 45.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walker Dunlop vs. Polen International Growth
Performance |
| Timeline |
| Walker Dunlop |
| Polen International |
Walker Dunlop and Polen International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Polen International
The main advantage of trading using opposite Walker Dunlop and Polen International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Polen International 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 Polen International will offset losses from the drop in Polen International'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 |
| Polen International vs. Polen Growth Fund | Polen International vs. Congress Mid Cap | Polen International vs. Polen Global Growth | Polen International vs. Zacks Dividend Fund |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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