Correlation Between Walker Dunlop and Raiffeisen Bank
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Raiffeisen Bank 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 Raiffeisen Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Raiffeisen Bank International, you can compare the effects of market volatilities on Walker Dunlop and Raiffeisen Bank 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 Raiffeisen Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Raiffeisen Bank.
Diversification Opportunities for Walker Dunlop and Raiffeisen Bank
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Walker and Raiffeisen is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Raiffeisen Bank International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Raiffeisen Bank Inte 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 Raiffeisen Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Raiffeisen Bank Inte has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Raiffeisen Bank go up and down completely randomly.
Pair Corralation between Walker Dunlop and Raiffeisen Bank
Allowing for the 90-day total investment horizon Walker Dunlop is expected to under-perform the Raiffeisen Bank. But the stock apears to be less risky and, when comparing its historical volatility, Walker Dunlop is 2.29 times less risky than Raiffeisen Bank. The stock trades about -0.08 of its potential returns per unit of risk. The Raiffeisen Bank International is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 46,800 in Raiffeisen Bank International on August 27, 2024 and sell it today you would lose (770.00) from holding Raiffeisen Bank International or give up 1.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Walker Dunlop vs. Raiffeisen Bank International
Performance |
| Timeline |
| Walker Dunlop |
| Raiffeisen Bank Inte |
Walker Dunlop and Raiffeisen Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Raiffeisen Bank
The main advantage of trading using opposite Walker Dunlop and Raiffeisen Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Raiffeisen Bank 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 Raiffeisen Bank will offset losses from the drop in Raiffeisen Bank'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 |
| Raiffeisen Bank vs. Cez AS | Raiffeisen Bank vs. Kofola CeskoSlovensko as | Raiffeisen Bank vs. Primoco UAV SE | Raiffeisen Bank vs. MT 1997 AS |
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.
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