Correlation Between Walker Dunlop and Western Asset
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Western Asset 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 Western Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Western Asset Adjustable, you can compare the effects of market volatilities on Walker Dunlop and Western Asset 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 Western Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Western Asset.
Diversification Opportunities for Walker Dunlop and Western Asset
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Walker and Western is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Western Asset Adjustable in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Asset Adjustable 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 Western Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Asset Adjustable has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Western Asset go up and down completely randomly.
Pair Corralation between Walker Dunlop and Western Asset
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 18.78 times more return on investment than Western Asset. However, Walker Dunlop is 18.78 times more volatile than Western Asset Adjustable. It trades about 0.04 of its potential returns per unit of risk. Western Asset Adjustable is currently generating about 0.31 per unit of risk. If you would invest 11,120 in Walker Dunlop on August 27, 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walker Dunlop vs. Western Asset Adjustable
Performance |
| Timeline |
| Walker Dunlop |
| Western Asset Adjustable |
Walker Dunlop and Western Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Western Asset
The main advantage of trading using opposite Walker Dunlop and Western Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Western Asset 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 Western Asset will offset losses from the drop in Western Asset'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 |
| Western Asset vs. Western Asset Adjustable | Western Asset vs. Short Term Fund A | Western Asset vs. Western Asset Mortgage | Western Asset vs. Western Asset Intermediate Term |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Stocks Directory Find actively traded stocks across global markets | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |