Correlation Between Walker Dunlop and Thornburg Investment
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Thornburg Investment 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 Thornburg Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Thornburg Investment Income, you can compare the effects of market volatilities on Walker Dunlop and Thornburg Investment 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 Thornburg Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Thornburg Investment.
Diversification Opportunities for Walker Dunlop and Thornburg Investment
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Walker and Thornburg is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Thornburg Investment Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thornburg Investment 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 Thornburg Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thornburg Investment has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Thornburg Investment go up and down completely randomly.
Pair Corralation between Walker Dunlop and Thornburg Investment
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 3.36 times more return on investment than Thornburg Investment. However, Walker Dunlop is 3.36 times more volatile than Thornburg Investment Income. It trades about 0.08 of its potential returns per unit of risk. Thornburg Investment Income is currently generating about 0.04 per unit of risk. If you would invest 9,351 in Walker Dunlop on September 1, 2024 and sell it today you would earn a total of 1,667 from holding Walker Dunlop or generate 17.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Walker Dunlop vs. Thornburg Investment Income
Performance |
| Timeline |
| Walker Dunlop |
| Thornburg Investment |
Walker Dunlop and Thornburg Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Thornburg Investment
The main advantage of trading using opposite Walker Dunlop and Thornburg Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Thornburg Investment 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 Thornburg Investment will offset losses from the drop in Thornburg Investment'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 |
| Thornburg Investment vs. Franklin Income Fund | Thornburg Investment vs. Jpmorgan Income Builder | Thornburg Investment vs. First Eagle Global | Thornburg Investment vs. Ivy Asset Strategy |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |