Correlation Between Walker Dunlop and Federated Strategic
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Federated Strategic 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 Federated Strategic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Federated Strategic Value, you can compare the effects of market volatilities on Walker Dunlop and Federated Strategic 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 Federated Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Federated Strategic.
Diversification Opportunities for Walker Dunlop and Federated Strategic
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Walker and Federated is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Federated Strategic Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Strategic Value 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 Federated Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated Strategic Value has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Federated Strategic go up and down completely randomly.
Pair Corralation between Walker Dunlop and Federated Strategic
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 1.34 times less return on investment than Federated Strategic. In addition to that, Walker Dunlop is 3.24 times more volatile than Federated Strategic Value. It trades about 0.05 of its total potential returns per unit of risk. Federated Strategic Value is currently generating about 0.21 per unit of volatility. If you would invest 627.00 in Federated Strategic Value on September 1, 2024 and sell it today you would earn a total of 14.00 from holding Federated Strategic Value or generate 2.23% 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. Federated Strategic Value
Performance |
| Timeline |
| Walker Dunlop |
| Federated Strategic Value |
Walker Dunlop and Federated Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Federated Strategic
The main advantage of trading using opposite Walker Dunlop and Federated Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Federated Strategic 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 Federated Strategic will offset losses from the drop in Federated Strategic'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 |
| Federated Strategic vs. Federated Emerging Market | Federated Strategic vs. Federated Mdt All | Federated Strategic vs. Federated Mdt Balanced | Federated Strategic vs. Federated Global Allocation |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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