Correlation Between Walker Dunlop and LOEWS
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By analyzing existing cross correlation between Walker Dunlop and LOEWS P 4125, you can compare the effects of market volatilities on Walker Dunlop and LOEWS 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 LOEWS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and LOEWS.
Diversification Opportunities for Walker Dunlop and LOEWS
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Walker and LOEWS is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and LOEWS P 4125 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LOEWS P 4125 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 LOEWS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LOEWS P 4125 has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and LOEWS go up and down completely randomly.
Pair Corralation between Walker Dunlop and LOEWS
Allowing for the 90-day total investment horizon Walker Dunlop is expected to under-perform the LOEWS. In addition to that, Walker Dunlop is 1.99 times more volatile than LOEWS P 4125. It trades about -0.09 of its total potential returns per unit of risk. LOEWS P 4125 is currently generating about -0.05 per unit of volatility. If you would invest 8,567 in LOEWS P 4125 on November 28, 2024 and sell it today you would lose (390.00) from holding LOEWS P 4125 or give up 4.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 69.42% |
| Values | Daily Returns |
Walker Dunlop vs. LOEWS P 4125
Performance |
| Timeline |
| Walker Dunlop |
| LOEWS P 4125 |
Walker Dunlop and LOEWS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and LOEWS
The main advantage of trading using opposite Walker Dunlop and LOEWS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, LOEWS 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 LOEWS will offset losses from the drop in LOEWS'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 |
| LOEWS vs. Catalyst Pharmaceuticals | LOEWS vs. Belden Inc | LOEWS vs. Molecular Partners AG | LOEWS vs. Alto Neuroscience, |
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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