Correlation Between Walker Dunlop and Vef AB
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Vef AB 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 Vef AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Vef AB, you can compare the effects of market volatilities on Walker Dunlop and Vef AB 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 Vef AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Vef AB.
Diversification Opportunities for Walker Dunlop and Vef AB
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Walker and Vef is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Vef AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vef AB 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 Vef AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vef AB has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Vef AB go up and down completely randomly.
Pair Corralation between Walker Dunlop and Vef AB
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 0.88 times more return on investment than Vef AB. However, Walker Dunlop is 1.13 times less risky than Vef AB. It trades about 0.09 of its potential returns per unit of risk. Vef AB is currently generating about 0.02 per unit of risk. If you would invest 6,931 in Walker Dunlop on September 4, 2024 and sell it today you would earn a total of 4,090 from holding Walker Dunlop or generate 59.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.32% |
| Values | Daily Returns |
Walker Dunlop vs. Vef AB
Performance |
| Timeline |
| Walker Dunlop |
| Vef AB |
Walker Dunlop and Vef AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Vef AB
The main advantage of trading using opposite Walker Dunlop and Vef AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Vef AB 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 Vef AB will offset losses from the drop in Vef AB'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 |
| Vef AB vs. L E Lundbergfretagen | Vef AB vs. Industrivarden AB ser | Vef AB vs. Svenska Handelsbanken AB | Vef AB vs. Investor AB ser |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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