Correlation Between Walker Dunlop and Thai Union
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Thai Union 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 Union 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 Union Group, you can compare the effects of market volatilities on Walker Dunlop and Thai Union 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 Union. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Thai Union.
Diversification Opportunities for Walker Dunlop and Thai Union
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Walker and Thai is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Thai Union Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Union Group 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 Union. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai Union Group has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Thai Union go up and down completely randomly.
Pair Corralation between Walker Dunlop and Thai Union
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 36.85 times less return on investment than Thai Union. But when comparing it to its historical volatility, Walker Dunlop is 29.44 times less risky than Thai Union. It trades about 0.05 of its potential returns per unit of risk. Thai Union Group is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,696 in Thai Union Group on August 30, 2024 and sell it today you would lose (346.00) from holding Thai Union Group or give up 20.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.17% |
| Values | Daily Returns |
Walker Dunlop vs. Thai Union Group
Performance |
| Timeline |
| Walker Dunlop |
| Thai Union Group |
Walker Dunlop and Thai Union Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Thai Union
The main advantage of trading using opposite Walker Dunlop and Thai Union positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Thai Union 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 Union will offset losses from the drop in Thai Union'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 Union vs. Carabao Group Public | Thai Union vs. Jay Mart Public | Thai Union vs. Gulf Energy Development | Thai Union vs. KCE Electronics 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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