Correlation Between Walker Dunlop and Segall Bryant
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Segall Bryant 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 Segall Bryant into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Segall Bryant Hamill, you can compare the effects of market volatilities on Walker Dunlop and Segall Bryant 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 Segall Bryant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Segall Bryant.
Diversification Opportunities for Walker Dunlop and Segall Bryant
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Walker and Segall is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Segall Bryant Hamill in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Segall Bryant Hamill 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 Segall Bryant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Segall Bryant Hamill has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Segall Bryant go up and down completely randomly.
Pair Corralation between Walker Dunlop and Segall Bryant
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 2.32 times more return on investment than Segall Bryant. However, Walker Dunlop is 2.32 times more volatile than Segall Bryant Hamill. It trades about 0.08 of its potential returns per unit of risk. Segall Bryant Hamill is currently generating about 0.12 per unit of risk. If you would invest 9,351 in Walker Dunlop on September 1, 2024 and sell it today you would earn a total of 1,667 from holding Walker Dunlop or generate 17.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Walker Dunlop vs. Segall Bryant Hamill
Performance |
| Timeline |
| Walker Dunlop |
| Segall Bryant Hamill |
Walker Dunlop and Segall Bryant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Segall Bryant
The main advantage of trading using opposite Walker Dunlop and Segall Bryant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Segall Bryant 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 Segall Bryant will offset losses from the drop in Segall Bryant'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 |
| Segall Bryant vs. Asg Managed Futures | Segall Bryant vs. Aqr Managed Futures | Segall Bryant vs. Ab Bond Inflation | Segall Bryant vs. Oklahoma College Savings |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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