Correlation Between Walker Dunlop and CI MidCap
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and CI MidCap 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 CI MidCap into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and CI MidCap Dividend, you can compare the effects of market volatilities on Walker Dunlop and CI MidCap 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 CI MidCap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and CI MidCap.
Diversification Opportunities for Walker Dunlop and CI MidCap
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Walker and UMI is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and CI MidCap Dividend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI MidCap Dividend 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 CI MidCap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CI MidCap Dividend has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and CI MidCap go up and down completely randomly.
Pair Corralation between Walker Dunlop and CI MidCap
Allowing for the 90-day total investment horizon Walker Dunlop is expected to under-perform the CI MidCap. In addition to that, Walker Dunlop is 2.37 times more volatile than CI MidCap Dividend. It trades about -0.07 of its total potential returns per unit of risk. CI MidCap Dividend is currently generating about 0.13 per unit of volatility. If you would invest 3,400 in CI MidCap Dividend on October 26, 2024 and sell it today you would earn a total of 81.00 from holding CI MidCap Dividend or generate 2.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
Walker Dunlop vs. CI MidCap Dividend
Performance |
| Timeline |
| Walker Dunlop |
| CI MidCap Dividend |
Walker Dunlop and CI MidCap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and CI MidCap
The main advantage of trading using opposite Walker Dunlop and CI MidCap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, CI MidCap 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 CI MidCap will offset losses from the drop in CI MidCap'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 |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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