Correlation Between Walker Dunlop and CABKSM
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By analyzing existing cross correlation between Walker Dunlop and CABKSM 6208 18 JAN 29, you can compare the effects of market volatilities on Walker Dunlop and CABKSM 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 CABKSM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and CABKSM.
Diversification Opportunities for Walker Dunlop and CABKSM
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Walker and CABKSM is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and CABKSM 6208 18 JAN 29 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CABKSM 6208 18 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 CABKSM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CABKSM 6208 18 has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and CABKSM go up and down completely randomly.
Pair Corralation between Walker Dunlop and CABKSM
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 4.71 times more return on investment than CABKSM. However, Walker Dunlop is 4.71 times more volatile than CABKSM 6208 18 JAN 29. It trades about 0.05 of its potential returns per unit of risk. CABKSM 6208 18 JAN 29 is currently generating about -0.16 per unit of risk. If you would invest 10,870 in Walker Dunlop on September 1, 2024 and sell it today you would earn a total of 148.00 from holding Walker Dunlop or generate 1.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 80.95% |
| Values | Daily Returns |
Walker Dunlop vs. CABKSM 6208 18 JAN 29
Performance |
| Timeline |
| Walker Dunlop |
| CABKSM 6208 18 |
Walker Dunlop and CABKSM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and CABKSM
The main advantage of trading using opposite Walker Dunlop and CABKSM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, CABKSM 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 CABKSM will offset losses from the drop in CABKSM'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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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