Correlation Between Walker Dunlop and Rithm Capital
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Rithm Capital 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 Rithm Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Rithm Capital Corp, you can compare the effects of market volatilities on Walker Dunlop and Rithm Capital 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 Rithm Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Rithm Capital.
Diversification Opportunities for Walker Dunlop and Rithm Capital
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Walker and Rithm is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Rithm Capital Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rithm Capital Corp 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 Rithm Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rithm Capital Corp has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Rithm Capital go up and down completely randomly.
Pair Corralation between Walker Dunlop and Rithm Capital
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 1.59 times more return on investment than Rithm Capital. However, Walker Dunlop is 1.59 times more volatile than Rithm Capital Corp. It trades about 0.07 of its potential returns per unit of risk. Rithm Capital Corp is currently generating about 0.02 per unit of risk. If you would invest 9,272 in Walker Dunlop on August 24, 2024 and sell it today you would earn a total of 1,409 from holding Walker Dunlop or generate 15.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walker Dunlop vs. Rithm Capital Corp
Performance |
| Timeline |
| Walker Dunlop |
| Rithm Capital Corp |
Walker Dunlop and Rithm Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Rithm Capital
The main advantage of trading using opposite Walker Dunlop and Rithm Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Rithm Capital 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 Rithm Capital will offset losses from the drop in Rithm Capital'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 |
| Rithm Capital vs. Starwood Property Trust | Rithm Capital vs. AGNC Investment Corp | Rithm Capital vs. Blackstone Mortgage Trust | Rithm Capital vs. Ares Commercial Real |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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