Correlation Between Walker Dunlop and Wheeler Real
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Wheeler Real 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 Wheeler Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Wheeler Real Estate, you can compare the effects of market volatilities on Walker Dunlop and Wheeler Real 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 Wheeler Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Wheeler Real.
Diversification Opportunities for Walker Dunlop and Wheeler Real
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Walker and Wheeler is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Wheeler Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wheeler Real Estate 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 Wheeler Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wheeler Real Estate has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Wheeler Real go up and down completely randomly.
Pair Corralation between Walker Dunlop and Wheeler Real
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 2.84 times less return on investment than Wheeler Real. But when comparing it to its historical volatility, Walker Dunlop is 13.03 times less risky than Wheeler Real. It trades about 0.07 of its potential returns per unit of risk. Wheeler Real Estate is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 25,920 in Wheeler Real Estate on August 24, 2024 and sell it today you would lose (25,070) from holding Wheeler Real Estate or give up 96.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walker Dunlop vs. Wheeler Real Estate
Performance |
| Timeline |
| Walker Dunlop |
| Wheeler Real Estate |
Walker Dunlop and Wheeler Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Wheeler Real
The main advantage of trading using opposite Walker Dunlop and Wheeler Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Wheeler Real 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 Wheeler Real will offset losses from the drop in Wheeler Real's long position.| Walker Dunlop vs. Encore Capital Group | Walker Dunlop vs. Federal Home Loan | Walker Dunlop vs. Federal National Mortgage | Walker Dunlop vs. CNFinance Holdings |
| Wheeler Real vs. CBL Associates Properties | Wheeler Real vs. Cedar Realty Trust | Wheeler Real vs. Macerich Company | Wheeler Real vs. Simon Property Group |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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