Correlation Between Walker Dunlop and SHF Holdings
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and SHF Holdings 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 SHF Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and SHF Holdings, you can compare the effects of market volatilities on Walker Dunlop and SHF Holdings 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 SHF Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and SHF Holdings.
Diversification Opportunities for Walker Dunlop and SHF Holdings
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Walker and SHF is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and SHF Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SHF 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 SHF Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SHF Holdings has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and SHF Holdings go up and down completely randomly.
Pair Corralation between Walker Dunlop and SHF Holdings
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 0.14 times more return on investment than SHF Holdings. However, Walker Dunlop is 7.39 times less risky than SHF Holdings. It trades about -0.42 of its potential returns per unit of risk. SHF Holdings is currently generating about -0.23 per unit of risk. If you would invest 9,652 in Walker Dunlop on November 27, 2024 and sell it today you would lose (1,337) from holding Walker Dunlop or give up 13.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 55.0% |
| Values | Daily Returns |
Walker Dunlop vs. SHF Holdings
Performance |
| Timeline |
| Walker Dunlop |
| SHF Holdings |
Walker Dunlop and SHF Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and SHF Holdings
The main advantage of trading using opposite Walker Dunlop and SHF Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, SHF Holdings 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 SHF Holdings will offset losses from the drop in SHF Holdings' 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 |
| SHF Holdings vs. National Vision Holdings | SHF Holdings vs. Alvotech | SHF Holdings vs. Western Digital | SHF Holdings vs. Analog Devices |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |