Correlation Between Walker Dunlop and Cambria Cannabis
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Cambria Cannabis 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 Cambria Cannabis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Cambria Cannabis ETF, you can compare the effects of market volatilities on Walker Dunlop and Cambria Cannabis 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 Cambria Cannabis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Cambria Cannabis.
Diversification Opportunities for Walker Dunlop and Cambria Cannabis
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Walker and Cambria is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Cambria Cannabis ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cambria Cannabis ETF 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 Cambria Cannabis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cambria Cannabis ETF has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Cambria Cannabis go up and down completely randomly.
Pair Corralation between Walker Dunlop and Cambria Cannabis
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 1.25 times more return on investment than Cambria Cannabis. However, Walker Dunlop is 1.25 times more volatile than Cambria Cannabis ETF. It trades about 0.04 of its potential returns per unit of risk. Cambria Cannabis ETF is currently generating about -0.01 per unit of risk. If you would invest 7,669 in Walker Dunlop on September 4, 2024 and sell it today you would earn a total of 3,352 from holding Walker Dunlop or generate 43.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walker Dunlop vs. Cambria Cannabis ETF
Performance |
| Timeline |
| Walker Dunlop |
| Cambria Cannabis ETF |
Walker Dunlop and Cambria Cannabis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Cambria Cannabis
The main advantage of trading using opposite Walker Dunlop and Cambria Cannabis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Cambria Cannabis 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 Cambria Cannabis will offset losses from the drop in Cambria Cannabis' 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 |
| Cambria Cannabis vs. Managed Account Series | Cambria Cannabis vs. Fidelity Sai International | Cambria Cannabis vs. Schwab Strategic Trust | Cambria Cannabis vs. Inpex Corp ADR |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |