Correlation Between Walker Dunlop and Lyxor UCITS
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Lyxor UCITS 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 Lyxor UCITS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Lyxor UCITS iBoxx, you can compare the effects of market volatilities on Walker Dunlop and Lyxor UCITS 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 Lyxor UCITS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Lyxor UCITS.
Diversification Opportunities for Walker Dunlop and Lyxor UCITS
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Walker and Lyxor is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Lyxor UCITS iBoxx in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lyxor UCITS iBoxx 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 Lyxor UCITS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lyxor UCITS iBoxx has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Lyxor UCITS go up and down completely randomly.
Pair Corralation between Walker Dunlop and Lyxor UCITS
Allowing for the 90-day total investment horizon Walker Dunlop is expected to under-perform the Lyxor UCITS. In addition to that, Walker Dunlop is 4.5 times more volatile than Lyxor UCITS iBoxx. It trades about -0.02 of its total potential returns per unit of risk. Lyxor UCITS iBoxx is currently generating about 0.31 per unit of volatility. If you would invest 9,101 in Lyxor UCITS iBoxx on August 30, 2024 and sell it today you would earn a total of 459.00 from holding Lyxor UCITS iBoxx or generate 5.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walker Dunlop vs. Lyxor UCITS iBoxx
Performance |
| Timeline |
| Walker Dunlop |
| Lyxor UCITS iBoxx |
Walker Dunlop and Lyxor UCITS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Lyxor UCITS
The main advantage of trading using opposite Walker Dunlop and Lyxor UCITS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Lyxor UCITS 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 Lyxor UCITS will offset losses from the drop in Lyxor UCITS's long position.| Walker Dunlop vs. Velocity Financial Llc | Walker Dunlop vs. Security National Financial | Walker Dunlop vs. Encore Capital Group | Walker Dunlop vs. PennyMac Finl Svcs |
| Lyxor UCITS vs. Manitou BF SA | Lyxor UCITS vs. Ossiam Minimum Variance | Lyxor UCITS vs. Ekinops SA | Lyxor UCITS vs. Orapi SA |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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