Correlation Between Walker Dunlop and SunOpta
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and SunOpta 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 SunOpta into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and SunOpta, you can compare the effects of market volatilities on Walker Dunlop and SunOpta 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 SunOpta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and SunOpta.
Diversification Opportunities for Walker Dunlop and SunOpta
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Walker and SunOpta is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and SunOpta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SunOpta 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 SunOpta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SunOpta has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and SunOpta go up and down completely randomly.
Pair Corralation between Walker Dunlop and SunOpta
Allowing for the 90-day total investment horizon Walker Dunlop is expected to under-perform the SunOpta. But the stock apears to be less risky and, when comparing its historical volatility, Walker Dunlop is 2.02 times less risky than SunOpta. The stock trades about 0.0 of its potential returns per unit of risk. The SunOpta is currently generating about 0.42 of returns per unit of risk over similar time horizon. If you would invest 586.00 in SunOpta on August 31, 2024 and sell it today you would earn a total of 195.00 from holding SunOpta or generate 33.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walker Dunlop vs. SunOpta
Performance |
| Timeline |
| Walker Dunlop |
| SunOpta |
Walker Dunlop and SunOpta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and SunOpta
The main advantage of trading using opposite Walker Dunlop and SunOpta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, SunOpta 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 SunOpta will offset losses from the drop in SunOpta'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 |
| SunOpta vs. Central Garden Pet | SunOpta vs. Bridgford Foods | SunOpta vs. Lancaster Colony | SunOpta vs. HUMANA INC |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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