Correlation Between Walker Dunlop and Capital Growth
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Capital Growth 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 Capital Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Capital Growth Fund, you can compare the effects of market volatilities on Walker Dunlop and Capital Growth 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 Capital Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Capital Growth.
Diversification Opportunities for Walker Dunlop and Capital Growth
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Walker and Capital is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Capital Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capital Growth 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 Capital Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capital Growth has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Capital Growth go up and down completely randomly.
Pair Corralation between Walker Dunlop and Capital Growth
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 1.77 times less return on investment than Capital Growth. In addition to that, Walker Dunlop is 1.98 times more volatile than Capital Growth Fund. It trades about 0.01 of its total potential returns per unit of risk. Capital Growth Fund is currently generating about 0.04 per unit of volatility. If you would invest 1,198 in Capital Growth Fund on November 9, 2024 and sell it today you would earn a total of 115.00 from holding Capital Growth Fund or generate 9.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walker Dunlop vs. Capital Growth Fund
Performance |
| Timeline |
| Walker Dunlop |
| Capital Growth |
Walker Dunlop and Capital Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Capital Growth
The main advantage of trading using opposite Walker Dunlop and Capital Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Capital Growth 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 Capital Growth will offset losses from the drop in Capital Growth'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 |
| Capital Growth vs. Lord Abbett Diversified | Capital Growth vs. Principal Lifetime Hybrid | Capital Growth vs. Blrc Sgy Mnp | Capital Growth vs. Rbb Fund |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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