Correlation Between Walker Dunlop and KRAFT
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By analyzing existing cross correlation between Walker Dunlop and KRAFT FOODS GROUP, you can compare the effects of market volatilities on Walker Dunlop and KRAFT 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 KRAFT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and KRAFT.
Diversification Opportunities for Walker Dunlop and KRAFT
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Walker and KRAFT is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and KRAFT FOODS GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KRAFT FOODS 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 KRAFT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KRAFT FOODS GROUP has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and KRAFT go up and down completely randomly.
Pair Corralation between Walker Dunlop and KRAFT
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 1.84 times more return on investment than KRAFT. However, Walker Dunlop is 1.84 times more volatile than KRAFT FOODS GROUP. It trades about 0.09 of its potential returns per unit of risk. KRAFT FOODS GROUP is currently generating about 0.03 per unit of risk. If you would invest 9,353 in Walker Dunlop on August 28, 2024 and sell it today you would earn a total of 1,896 from holding Walker Dunlop or generate 20.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 84.0% |
| Values | Daily Returns |
Walker Dunlop vs. KRAFT FOODS GROUP
Performance |
| Timeline |
| Walker Dunlop |
| KRAFT FOODS GROUP |
Walker Dunlop and KRAFT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and KRAFT
The main advantage of trading using opposite Walker Dunlop and KRAFT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, KRAFT 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 KRAFT will offset losses from the drop in KRAFT'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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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