Correlation Between Walker Dunlop and Vossloh AG
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Vossloh AG 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 Vossloh AG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Vossloh AG, you can compare the effects of market volatilities on Walker Dunlop and Vossloh AG 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 Vossloh AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Vossloh AG.
Diversification Opportunities for Walker Dunlop and Vossloh AG
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Walker and Vossloh is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Vossloh AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vossloh 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 Vossloh AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vossloh AG has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Vossloh AG go up and down completely randomly.
Pair Corralation between Walker Dunlop and Vossloh AG
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 1.73 times more return on investment than Vossloh AG. However, Walker Dunlop is 1.73 times more volatile than Vossloh AG. It trades about 0.04 of its potential returns per unit of risk. Vossloh AG is currently generating about 0.03 per unit of risk. If you would invest 7,547 in Walker Dunlop on September 5, 2024 and sell it today you would earn a total of 3,369 from holding Walker Dunlop or generate 44.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.02% |
| Values | Daily Returns |
Walker Dunlop vs. Vossloh AG
Performance |
| Timeline |
| Walker Dunlop |
| Vossloh AG |
Walker Dunlop and Vossloh AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Vossloh AG
The main advantage of trading using opposite Walker Dunlop and Vossloh AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Vossloh AG 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 Vossloh AG will offset losses from the drop in Vossloh AG's long position.| Walker Dunlop vs. Mr Cooper Group | Walker Dunlop vs. Security National Financial | Walker Dunlop vs. Encore Capital Group | Walker Dunlop vs. Timbercreek Financial Corp |
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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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