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 Utilities, 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
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Walker and SPDR is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and SPDR SP Utilities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR SP Utilities 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 Utilities 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 1.73 times more return on investment than SPDR SP. However, Walker Dunlop is 1.73 times more volatile than SPDR SP Utilities. It trades about 0.08 of its potential returns per unit of risk. SPDR SP Utilities is currently generating about 0.08 per unit of risk. If you would invest 9,238 in Walker Dunlop on November 8, 2024 and sell it today you would earn a total of 285.00 from holding Walker Dunlop or generate 3.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 86.96% |
| Values | Daily Returns |
Walker Dunlop vs. SPDR SP Utilities
Performance |
| Timeline |
| Walker Dunlop |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| SPDR SP Utilities |
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. Guild Holdings Co | Walker Dunlop vs. Encore Capital Group | Walker Dunlop vs. PennyMac Finl Svcs | Walker Dunlop vs. CNFinance Holdings |
| SPDR SP vs. SPDR MSCI Europe | SPDR SP vs. SPDR MSCI Europe | SPDR SP vs. SPDR MSCI EM | SPDR SP vs. SPDR Bloomberg Global |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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