Correlation Between Walker Dunlop and Sumitomo Electric
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Sumitomo Electric 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 Sumitomo Electric into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Sumitomo Electric Industries, you can compare the effects of market volatilities on Walker Dunlop and Sumitomo Electric 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 Sumitomo Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Sumitomo Electric.
Diversification Opportunities for Walker Dunlop and Sumitomo Electric
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Walker and Sumitomo is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Sumitomo Electric Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sumitomo Electric 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 Sumitomo Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sumitomo Electric has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Sumitomo Electric go up and down completely randomly.
Pair Corralation between Walker Dunlop and Sumitomo Electric
If you would invest 10,870 in Walker Dunlop on September 1, 2024 and sell it today you would earn a total of 148.00 from holding Walker Dunlop or generate 1.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Walker Dunlop vs. Sumitomo Electric Industries
Performance |
| Timeline |
| Walker Dunlop |
| Sumitomo Electric |
Walker Dunlop and Sumitomo Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Sumitomo Electric
The main advantage of trading using opposite Walker Dunlop and Sumitomo Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Sumitomo Electric 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 Sumitomo Electric will offset losses from the drop in Sumitomo Electric'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 |
| Sumitomo Electric vs. Micron Technology | Sumitomo Electric vs. Elmos Semiconductor SE | Sumitomo Electric vs. ASE Industrial Holding | Sumitomo Electric vs. Perseus Mining Limited |
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 Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |