Correlation Between Walker Dunlop and Polar Capital
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Polar Capital 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 Polar Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Polar Capital Emerging, you can compare the effects of market volatilities on Walker Dunlop and Polar Capital 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 Polar Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Polar Capital.
Diversification Opportunities for Walker Dunlop and Polar Capital
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Walker and Polar is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Polar Capital Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Polar Capital Emerging 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 Polar Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Polar Capital Emerging has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Polar Capital go up and down completely randomly.
Pair Corralation between Walker Dunlop and Polar Capital
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 2.18 times more return on investment than Polar Capital. However, Walker Dunlop is 2.18 times more volatile than Polar Capital Emerging. It trades about 0.05 of its potential returns per unit of risk. Polar Capital Emerging is currently generating about 0.04 per unit of risk. If you would invest 7,629 in Walker Dunlop on August 30, 2024 and sell it today you would earn a total of 3,453 from holding Walker Dunlop or generate 45.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Walker Dunlop vs. Polar Capital Emerging
Performance |
| Timeline |
| Walker Dunlop |
| Polar Capital Emerging |
Walker Dunlop and Polar Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Polar Capital
The main advantage of trading using opposite Walker Dunlop and Polar Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Polar Capital 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 Polar Capital will offset losses from the drop in Polar Capital's long position.| Walker Dunlop vs. Velocity Financial Llc | Walker Dunlop vs. Security National Financial | Walker Dunlop vs. Encore Capital Group | Walker Dunlop vs. PennyMac Finl Svcs |
| Polar Capital vs. Ms Global Fixed | Polar Capital vs. Rbc Ultra Short Fixed | Polar Capital vs. The Hartford Equity | Polar Capital vs. Ultra Short Fixed Income |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |