Correlation Between Walker Dunlop and SPDR SP
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and SPDR SP 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 SPDR SP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and SPDR SP 500, you can compare the effects of market volatilities on Walker Dunlop and SPDR SP 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 SPDR SP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and SPDR SP.
Diversification Opportunities for Walker Dunlop and SPDR SP
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Walker and SPDR is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and SPDR SP 500 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR SP 500 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 SPDR SP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR SP 500 has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and SPDR SP go up and down completely randomly.
Pair Corralation between Walker Dunlop and SPDR SP
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 4.55 times less return on investment than SPDR SP. In addition to that, Walker Dunlop is 1.31 times more volatile than SPDR SP 500. It trades about 0.04 of its total potential returns per unit of risk. SPDR SP 500 is currently generating about 0.25 per unit of volatility. If you would invest 53,880 in SPDR SP 500 on August 28, 2024 and sell it today you would earn a total of 3,300 from holding SPDR SP 500 or generate 6.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Walker Dunlop vs. SPDR SP 500
Performance |
| Timeline |
| Walker Dunlop |
| SPDR SP 500 |
Walker Dunlop and SPDR SP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and SPDR SP
The main advantage of trading using opposite Walker Dunlop and SPDR SP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, SPDR SP 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 SPDR SP will offset losses from the drop in SPDR SP'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 |
| SPDR SP vs. SPDR MSCI Europe | SPDR SP vs. SPDR MSCI Europe | SPDR SP vs. SPDR Barclays Cap | SPDR SP vs. SPDR MSCI Europe |
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 Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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