Correlation Between Walker Dunlop and United Internet
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and United Internet 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 United Internet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and United Internet AG, you can compare the effects of market volatilities on Walker Dunlop and United Internet 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 United Internet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and United Internet.
Diversification Opportunities for Walker Dunlop and United Internet
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Walker and United is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and United Internet AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Internet AG 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 United Internet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Internet AG has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and United Internet go up and down completely randomly.
Pair Corralation between Walker Dunlop and United Internet
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 0.69 times more return on investment than United Internet. However, Walker Dunlop is 1.46 times less risky than United Internet. It trades about 0.04 of its potential returns per unit of risk. United Internet AG is currently generating about -0.11 per unit of risk. If you would invest 10,571 in Walker Dunlop on September 4, 2024 and sell it today you would earn a total of 345.00 from holding Walker Dunlop or generate 3.26% 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. United Internet AG
Performance |
| Timeline |
| Walker Dunlop |
| United Internet AG |
Walker Dunlop and United Internet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and United Internet
The main advantage of trading using opposite Walker Dunlop and United Internet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, United Internet 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 United Internet will offset losses from the drop in United Internet'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 |
| United Internet vs. T Mobile | United Internet vs. China Mobile Limited | United Internet vs. ATT Inc | United Internet vs. Nippon Telegraph and |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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