Correlation Between Walker Dunlop and Sun Life
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Sun Life 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 Sun Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Sun Life Financial, you can compare the effects of market volatilities on Walker Dunlop and Sun Life 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 Sun Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Sun Life.
Diversification Opportunities for Walker Dunlop and Sun Life
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Walker and Sun is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Sun Life Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sun Life Financial 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 Sun Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sun Life Financial has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Sun Life go up and down completely randomly.
Pair Corralation between Walker Dunlop and Sun Life
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 1.06 times less return on investment than Sun Life. In addition to that, Walker Dunlop is 1.41 times more volatile than Sun Life Financial. It trades about 0.05 of its total potential returns per unit of risk. Sun Life Financial is currently generating about 0.07 per unit of volatility. If you would invest 1,615 in Sun Life Financial on September 1, 2024 and sell it today you would earn a total of 28.00 from holding Sun Life Financial or generate 1.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 91.3% |
| Values | Daily Returns |
Walker Dunlop vs. Sun Life Financial
Performance |
| Timeline |
| Walker Dunlop |
| Sun Life Financial |
Walker Dunlop and Sun Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Sun Life
The main advantage of trading using opposite Walker Dunlop and Sun Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Sun Life 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 Sun Life will offset losses from the drop in Sun Life'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 |
| Sun Life vs. Fairfax Financial Holdings | Sun Life vs. iShares Canadian HYBrid | Sun Life vs. Brompton European Dividend | Sun Life vs. Solar Alliance Energy |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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