Correlation Between Walker Dunlop and Wesfarmers
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Wesfarmers 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 Wesfarmers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Wesfarmers, you can compare the effects of market volatilities on Walker Dunlop and Wesfarmers 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 Wesfarmers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Wesfarmers.
Diversification Opportunities for Walker Dunlop and Wesfarmers
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Walker and Wesfarmers is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Wesfarmers in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wesfarmers 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 Wesfarmers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wesfarmers has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Wesfarmers go up and down completely randomly.
Pair Corralation between Walker Dunlop and Wesfarmers
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 3.81 times less return on investment than Wesfarmers. In addition to that, Walker Dunlop is 1.63 times more volatile than Wesfarmers. It trades about 0.05 of its total potential returns per unit of risk. Wesfarmers is currently generating about 0.3 per unit of volatility. If you would invest 6,728 in Wesfarmers on September 1, 2024 and sell it today you would earn a total of 455.00 from holding Wesfarmers or generate 6.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 91.3% |
| Values | Daily Returns |
Walker Dunlop vs. Wesfarmers
Performance |
| Timeline |
| Walker Dunlop |
| Wesfarmers |
Walker Dunlop and Wesfarmers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Wesfarmers
The main advantage of trading using opposite Walker Dunlop and Wesfarmers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Wesfarmers 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 Wesfarmers will offset losses from the drop in Wesfarmers' 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 |
| Wesfarmers vs. Epsilon Healthcare | Wesfarmers vs. Global Health | Wesfarmers vs. Neurotech International | Wesfarmers vs. Oceania Healthcare |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |