Correlation Between Walker Dunlop and PUMA SE
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and PUMA SE 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 PUMA SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and PUMA SE, you can compare the effects of market volatilities on Walker Dunlop and PUMA SE 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 PUMA SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and PUMA SE.
Diversification Opportunities for Walker Dunlop and PUMA SE
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Walker and PUMA is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and PUMA SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PUMA SE 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 PUMA SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PUMA SE has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and PUMA SE go up and down completely randomly.
Pair Corralation between Walker Dunlop and PUMA SE
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 0.86 times more return on investment than PUMA SE. However, Walker Dunlop is 1.16 times less risky than PUMA SE. It trades about 0.06 of its potential returns per unit of risk. PUMA SE is currently generating about 0.0 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 Against |
| Strength | Insignificant |
| Accuracy | 99.73% |
| Values | Daily Returns |
Walker Dunlop vs. PUMA SE
Performance |
| Timeline |
| Walker Dunlop |
| PUMA SE |
Walker Dunlop and PUMA SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and PUMA SE
The main advantage of trading using opposite Walker Dunlop and PUMA SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, PUMA SE 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 PUMA SE will offset losses from the drop in PUMA SE'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 |
| PUMA SE vs. Asics Corp ADR | PUMA SE vs. American Rebel Holdings | PUMA SE vs. American Rebel Holdings | PUMA SE vs. Crocs Inc |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Global Correlations Find global opportunities by holding instruments from different markets |