Correlation Between Walker Dunlop and ETRACS 2x
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and ETRACS 2x 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 ETRACS 2x into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and ETRACS 2x Leveraged, you can compare the effects of market volatilities on Walker Dunlop and ETRACS 2x 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 ETRACS 2x. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and ETRACS 2x.
Diversification Opportunities for Walker Dunlop and ETRACS 2x
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Walker and ETRACS is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and ETRACS 2x Leveraged in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ETRACS 2x Leveraged 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 ETRACS 2x. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ETRACS 2x Leveraged has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and ETRACS 2x go up and down completely randomly.
Pair Corralation between Walker Dunlop and ETRACS 2x
Allowing for the 90-day total investment horizon Walker Dunlop is expected to under-perform the ETRACS 2x. In addition to that, Walker Dunlop is 1.17 times more volatile than ETRACS 2x Leveraged. It trades about 0.0 of its total potential returns per unit of risk. ETRACS 2x Leveraged is currently generating about 0.24 per unit of volatility. If you would invest 4,054 in ETRACS 2x Leveraged on August 30, 2024 and sell it today you would earn a total of 289.00 from holding ETRACS 2x Leveraged or generate 7.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walker Dunlop vs. ETRACS 2x Leveraged
Performance |
| Timeline |
| Walker Dunlop |
| ETRACS 2x Leveraged |
Walker Dunlop and ETRACS 2x Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and ETRACS 2x
The main advantage of trading using opposite Walker Dunlop and ETRACS 2x positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, ETRACS 2x 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 ETRACS 2x will offset losses from the drop in ETRACS 2x'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 |
| ETRACS 2x vs. Freedom Day Dividend | ETRACS 2x vs. Franklin Templeton ETF | ETRACS 2x vs. iShares MSCI China | ETRACS 2x vs. Tidal Trust II |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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