Correlation Between Walker Dunlop and Stampede Drilling
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Stampede Drilling 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 Stampede Drilling into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Stampede Drilling, you can compare the effects of market volatilities on Walker Dunlop and Stampede Drilling 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 Stampede Drilling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Stampede Drilling.
Diversification Opportunities for Walker Dunlop and Stampede Drilling
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Walker and Stampede is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Stampede Drilling in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stampede Drilling 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 Stampede Drilling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stampede Drilling has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Stampede Drilling go up and down completely randomly.
Pair Corralation between Walker Dunlop and Stampede Drilling
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 0.65 times more return on investment than Stampede Drilling. However, Walker Dunlop is 1.53 times less risky than Stampede Drilling. It trades about 0.05 of its potential returns per unit of risk. Stampede Drilling is currently generating about -0.01 per unit of risk. If you would invest 7,629 in Walker Dunlop on August 30, 2024 and sell it today you would earn a total of 3,453 from holding Walker Dunlop or generate 45.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Walker Dunlop vs. Stampede Drilling
Performance |
| Timeline |
| Walker Dunlop |
| Stampede Drilling |
Walker Dunlop and Stampede Drilling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Stampede Drilling
The main advantage of trading using opposite Walker Dunlop and Stampede Drilling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Stampede Drilling 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 Stampede Drilling will offset losses from the drop in Stampede Drilling'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 |
| Stampede Drilling vs. Canadian Natural Resources | Stampede Drilling vs. Suncor Energy | Stampede Drilling vs. iShares Canadian HYBrid | Stampede Drilling vs. Altagas Cum Red |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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