Correlation Between Walker Dunlop and Straumann Holding
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Straumann Holding 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 Straumann Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Straumann Holding AG, you can compare the effects of market volatilities on Walker Dunlop and Straumann Holding 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 Straumann Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Straumann Holding.
Diversification Opportunities for Walker Dunlop and Straumann Holding
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Walker and Straumann is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Straumann Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Straumann Holding 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 Straumann Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Straumann Holding has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Straumann Holding go up and down completely randomly.
Pair Corralation between Walker Dunlop and Straumann Holding
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 0.8 times more return on investment than Straumann Holding. However, Walker Dunlop is 1.25 times less risky than Straumann Holding. It trades about 0.02 of its potential returns per unit of risk. Straumann Holding AG is currently generating about -0.07 per unit of risk. If you would invest 10,690 in Walker Dunlop on August 25, 2024 and sell it today you would earn a total of 159.00 from holding Walker Dunlop or generate 1.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 96.97% |
| Values | Daily Returns |
Walker Dunlop vs. Straumann Holding AG
Performance |
| Timeline |
| Walker Dunlop |
| Straumann Holding |
Walker Dunlop and Straumann Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Straumann Holding
The main advantage of trading using opposite Walker Dunlop and Straumann Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Straumann Holding 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 Straumann Holding will offset losses from the drop in Straumann Holding'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 |
| Straumann Holding vs. Sonova H Ag | Straumann Holding vs. Sika AG | Straumann Holding vs. Lonza Group AG | Straumann Holding vs. Givaudan SA |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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