Correlation Between Walker Dunlop and Select Medical
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Select Medical 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 Select Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Select Medical Holdings, you can compare the effects of market volatilities on Walker Dunlop and Select Medical 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 Select Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Select Medical.
Diversification Opportunities for Walker Dunlop and Select Medical
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Walker and Select is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Select Medical Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Select Medical Holdings 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 Select Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Select Medical Holdings has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Select Medical go up and down completely randomly.
Pair Corralation between Walker Dunlop and Select Medical
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 1.22 times less return on investment than Select Medical. But when comparing it to its historical volatility, Walker Dunlop is 1.36 times less risky than Select Medical. It trades about 0.08 of its potential returns per unit of risk. Select Medical Holdings is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 3,564 in Select Medical Holdings on August 28, 2024 and sell it today you would earn a total of 306.00 from holding Select Medical Holdings or generate 8.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walker Dunlop vs. Select Medical Holdings
Performance |
| Timeline |
| Walker Dunlop |
| Select Medical Holdings |
Walker Dunlop and Select Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Select Medical
The main advantage of trading using opposite Walker Dunlop and Select Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Select Medical 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 Select Medical will offset losses from the drop in Select Medical'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 |
| Select Medical vs. The Ensign Group | Select Medical vs. Encompass Health Corp | Select Medical vs. InnovAge Holding Corp | Select Medical vs. Enhabit |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |