Correlation Between Walker Dunlop and Performance Trust
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Performance Trust 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 Performance Trust into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Performance Trust Strategic, you can compare the effects of market volatilities on Walker Dunlop and Performance Trust 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 Performance Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Performance Trust.
Diversification Opportunities for Walker Dunlop and Performance Trust
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Walker and Performance is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Performance Trust Strategic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Performance Trust 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 Performance Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Performance Trust has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Performance Trust go up and down completely randomly.
Pair Corralation between Walker Dunlop and Performance Trust
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 5.65 times more return on investment than Performance Trust. However, Walker Dunlop is 5.65 times more volatile than Performance Trust Strategic. It trades about 0.08 of its potential returns per unit of risk. Performance Trust Strategic is currently generating about 0.1 per unit of risk. If you would invest 9,351 in Walker Dunlop on September 1, 2024 and sell it today you would earn a total of 1,667 from holding Walker Dunlop or generate 17.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Walker Dunlop vs. Performance Trust Strategic
Performance |
| Timeline |
| Walker Dunlop |
| Performance Trust |
Walker Dunlop and Performance Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Performance Trust
The main advantage of trading using opposite Walker Dunlop and Performance Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Performance Trust 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 Performance Trust will offset losses from the drop in Performance Trust'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 |
| Performance Trust vs. Alphacentric Income Opportunities | Performance Trust vs. Performance Trust Municipal | Performance Trust vs. Guggenheim Total Return | Performance Trust vs. Pimco Income 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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