Correlation Between Walker Dunlop and BANK MANDIRI
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and BANK 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 BANK 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 BANK MANDIRI, you can compare the effects of market volatilities on Walker Dunlop and BANK 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 BANK MANDIRI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and BANK MANDIRI.
Diversification Opportunities for Walker Dunlop and BANK MANDIRI
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Walker and BANK is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and BANK MANDIRI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BANK MANDIRI 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 BANK MANDIRI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BANK MANDIRI has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and BANK MANDIRI go up and down completely randomly.
Pair Corralation between Walker Dunlop and BANK MANDIRI
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 0.9 times more return on investment than BANK MANDIRI. However, Walker Dunlop is 1.11 times less risky than BANK MANDIRI. It trades about 0.06 of its potential returns per unit of risk. BANK MANDIRI is currently generating about 0.03 per unit of risk. If you would invest 7,549 in Walker Dunlop on August 31, 2024 and sell it today you would earn a total of 3,469 from holding Walker Dunlop or generate 45.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.16% |
| Values | Daily Returns |
Walker Dunlop vs. BANK MANDIRI
Performance |
| Timeline |
| Walker Dunlop |
| BANK MANDIRI |
Walker Dunlop and BANK MANDIRI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and BANK MANDIRI
The main advantage of trading using opposite Walker Dunlop and BANK MANDIRI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, BANK 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 BANK MANDIRI will offset losses from the drop in BANK 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 |
| BANK MANDIRI vs. GRUPO CARSO A1 | BANK MANDIRI vs. SBA Communications Corp | BANK MANDIRI vs. Singapore Telecommunications Limited | BANK MANDIRI vs. Liberty Broadband |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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