Correlation Between Walker Dunlop and SIKA AG
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and SIKA AG 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 SIKA AG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and SIKA AG UNSPADR, you can compare the effects of market volatilities on Walker Dunlop and SIKA AG 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 SIKA AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and SIKA AG.
Diversification Opportunities for Walker Dunlop and SIKA AG
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Walker and SIKA is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and SIKA AG UNSPADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SIKA AG UNSPADR 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 SIKA AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SIKA AG UNSPADR has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and SIKA AG go up and down completely randomly.
Pair Corralation between Walker Dunlop and SIKA AG
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 1.06 times more return on investment than SIKA AG. However, Walker Dunlop is 1.06 times more volatile than SIKA AG UNSPADR. It trades about 0.02 of its potential returns per unit of risk. SIKA AG UNSPADR is currently generating about -0.03 per unit of risk. If you would invest 9,045 in Walker Dunlop on November 7, 2024 and sell it today you would earn a total of 438.00 from holding Walker Dunlop or generate 4.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.56% |
| Values | Daily Returns |
Walker Dunlop vs. SIKA AG UNSPADR
Performance |
| Timeline |
| Walker Dunlop |
| SIKA AG UNSPADR |
Walker Dunlop and SIKA AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and SIKA AG
The main advantage of trading using opposite Walker Dunlop and SIKA AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, SIKA AG 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 SIKA AG will offset losses from the drop in SIKA AG'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 |
| SIKA AG vs. BII Railway Transportation | SIKA AG vs. PLAYMATES TOYS | SIKA AG vs. PARKEN Sport Entertainment | SIKA AG vs. Yuexiu Transport Infrastructure |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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