Correlation Between Walker Dunlop and Thai Steel
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Thai Steel 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 Thai Steel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Thai Steel Cable, you can compare the effects of market volatilities on Walker Dunlop and Thai Steel 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 Thai Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Thai Steel.
Diversification Opportunities for Walker Dunlop and Thai Steel
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Walker and Thai is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Thai Steel Cable in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Steel Cable 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 Thai Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai Steel Cable has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Thai Steel go up and down completely randomly.
Pair Corralation between Walker Dunlop and Thai Steel
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 49.58 times less return on investment than Thai Steel. But when comparing it to its historical volatility, Walker Dunlop is 49.03 times less risky than Thai Steel. It trades about 0.08 of its potential returns per unit of risk. Thai Steel Cable is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,420 in Thai Steel Cable on September 1, 2024 and sell it today you would earn a total of 60.00 from holding Thai Steel Cable or generate 4.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.41% |
| Values | Daily Returns |
Walker Dunlop vs. Thai Steel Cable
Performance |
| Timeline |
| Walker Dunlop |
| Thai Steel Cable |
Walker Dunlop and Thai Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Thai Steel
The main advantage of trading using opposite Walker Dunlop and Thai Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Thai Steel 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 Thai Steel will offset losses from the drop in Thai Steel'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 |
| Thai Steel vs. TRC Construction Public | Thai Steel vs. Bangkok Expressway and | Thai Steel vs. Lohakit Metal Public | Thai Steel vs. Gunkul Engineering Public |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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