Correlation Between Walker Dunlop and QBE Insurance
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and QBE Insurance 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 QBE Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and QBE Insurance Group, you can compare the effects of market volatilities on Walker Dunlop and QBE Insurance 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 QBE Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and QBE Insurance.
Diversification Opportunities for Walker Dunlop and QBE Insurance
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Walker and QBE is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and QBE Insurance Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QBE Insurance Group 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 QBE Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of QBE Insurance Group has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and QBE Insurance go up and down completely randomly.
Pair Corralation between Walker Dunlop and QBE Insurance
Allowing for the 90-day total investment horizon Walker Dunlop is expected to under-perform the QBE Insurance. In addition to that, Walker Dunlop is 1.19 times more volatile than QBE Insurance Group. It trades about 0.0 of its total potential returns per unit of risk. QBE Insurance Group is currently generating about 0.32 per unit of volatility. If you would invest 1,010 in QBE Insurance Group on August 28, 2024 and sell it today you would earn a total of 210.00 from holding QBE Insurance Group or generate 20.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walker Dunlop vs. QBE Insurance Group
Performance |
| Timeline |
| Walker Dunlop |
| QBE Insurance Group |
Walker Dunlop and QBE Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and QBE Insurance
The main advantage of trading using opposite Walker Dunlop and QBE Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, QBE Insurance 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 QBE Insurance will offset losses from the drop in QBE Insurance'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 |
| QBE Insurance vs. Superior Plus Corp | QBE Insurance vs. NMI Holdings | QBE Insurance vs. Origin Agritech | QBE Insurance vs. SIVERS SEMICONDUCTORS AB |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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