Correlation Between Walker Dunlop and Saga Pure
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Saga Pure 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 Saga Pure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Saga Pure ASA, you can compare the effects of market volatilities on Walker Dunlop and Saga Pure 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 Saga Pure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Saga Pure.
Diversification Opportunities for Walker Dunlop and Saga Pure
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Walker and Saga is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Saga Pure ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saga Pure ASA 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 Saga Pure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saga Pure ASA has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Saga Pure go up and down completely randomly.
Pair Corralation between Walker Dunlop and Saga Pure
Allowing for the 90-day total investment horizon Walker Dunlop is expected to under-perform the Saga Pure. In addition to that, Walker Dunlop is 1.43 times more volatile than Saga Pure ASA. It trades about -0.16 of its total potential returns per unit of risk. Saga Pure ASA is currently generating about -0.06 per unit of volatility. If you would invest 129.00 in Saga Pure ASA on August 25, 2024 and sell it today you would lose (2.00) from holding Saga Pure ASA or give up 1.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Walker Dunlop vs. Saga Pure ASA
Performance |
| Timeline |
| Walker Dunlop |
| Saga Pure ASA |
Walker Dunlop and Saga Pure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Saga Pure
The main advantage of trading using opposite Walker Dunlop and Saga Pure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Saga Pure 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 Saga Pure will offset losses from the drop in Saga Pure'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 |
| Saga Pure vs. Aker Horizons AS | Saga Pure vs. REC Silicon ASA | Saga Pure vs. Kongsberg Automotive Holding | Saga Pure vs. Aker Carbon Capture |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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