Correlation Between Walker Dunlop and SANTANDER
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and SANTANDER 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 SANTANDER into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and SANTANDER UK 10, you can compare the effects of market volatilities on Walker Dunlop and SANTANDER 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 SANTANDER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and SANTANDER.
Diversification Opportunities for Walker Dunlop and SANTANDER
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Walker and SANTANDER is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and SANTANDER UK 10 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SANTANDER UK 10 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 SANTANDER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SANTANDER UK 10 has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and SANTANDER go up and down completely randomly.
Pair Corralation between Walker Dunlop and SANTANDER
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 15.81 times more return on investment than SANTANDER. However, Walker Dunlop is 15.81 times more volatile than SANTANDER UK 10. It trades about 0.04 of its potential returns per unit of risk. SANTANDER UK 10 is currently generating about 0.02 per unit of risk. If you would invest 11,120 in Walker Dunlop on August 28, 2024 and sell it today you would earn a total of 129.00 from holding Walker Dunlop or generate 1.16% 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. SANTANDER UK 10
Performance |
| Timeline |
| Walker Dunlop |
| SANTANDER UK 10 |
Walker Dunlop and SANTANDER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and SANTANDER
The main advantage of trading using opposite Walker Dunlop and SANTANDER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, SANTANDER 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 SANTANDER will offset losses from the drop in SANTANDER'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 |
| SANTANDER vs. Park Hotels Resorts | SANTANDER vs. Silvercorp Metals | SANTANDER vs. Endeavour Mining Corp | SANTANDER vs. Panther Metals PLC |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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