Correlation Between Walker Dunlop and Alfa Holdings
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Alfa Holdings 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 Alfa Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Alfa Holdings SA, you can compare the effects of market volatilities on Walker Dunlop and Alfa Holdings 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 Alfa Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Alfa Holdings.
Diversification Opportunities for Walker Dunlop and Alfa Holdings
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Walker and Alfa is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Alfa Holdings SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alfa Holdings SA 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 Alfa Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alfa Holdings SA has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Alfa Holdings go up and down completely randomly.
Pair Corralation between Walker Dunlop and Alfa Holdings
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 0.32 times more return on investment than Alfa Holdings. However, Walker Dunlop is 3.09 times less risky than Alfa Holdings. It trades about -0.01 of its potential returns per unit of risk. Alfa Holdings SA is currently generating about -0.32 per unit of risk. If you would invest 11,120 in Walker Dunlop on August 29, 2024 and sell it today you would lose (64.00) from holding Walker Dunlop or give up 0.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
Walker Dunlop vs. Alfa Holdings SA
Performance |
| Timeline |
| Walker Dunlop |
| Alfa Holdings SA |
Walker Dunlop and Alfa Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Alfa Holdings
The main advantage of trading using opposite Walker Dunlop and Alfa Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Alfa Holdings 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 Alfa Holdings will offset losses from the drop in Alfa Holdings' 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 |
| Alfa Holdings vs. Ambipar Participaes e | Alfa Holdings vs. Movida Participaes SA | Alfa Holdings vs. Banco BTG Pactual | Alfa Holdings vs. BTG Pactual Logstica |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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