Correlation Between Walker Dunlop and Banque Cantonale
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Banque Cantonale 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 Banque Cantonale into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Banque Cantonale du, you can compare the effects of market volatilities on Walker Dunlop and Banque Cantonale 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 Banque Cantonale. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Banque Cantonale.
Diversification Opportunities for Walker Dunlop and Banque Cantonale
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Walker and Banque is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Banque Cantonale du in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banque Cantonale 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 Banque Cantonale. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banque Cantonale has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Banque Cantonale go up and down completely randomly.
Pair Corralation between Walker Dunlop and Banque Cantonale
Allowing for the 90-day total investment horizon Walker Dunlop is expected to under-perform the Banque Cantonale. In addition to that, Walker Dunlop is 3.05 times more volatile than Banque Cantonale du. It trades about -0.19 of its total potential returns per unit of risk. Banque Cantonale du is currently generating about 0.07 per unit of volatility. If you would invest 11,050 in Banque Cantonale du on October 26, 2024 and sell it today you would earn a total of 200.00 from holding Banque Cantonale du or generate 1.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.44% |
| Values | Daily Returns |
Walker Dunlop vs. Banque Cantonale du
Performance |
| Timeline |
| Walker Dunlop |
| Banque Cantonale |
Walker Dunlop and Banque Cantonale Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Banque Cantonale
The main advantage of trading using opposite Walker Dunlop and Banque Cantonale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Banque Cantonale 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 Banque Cantonale will offset losses from the drop in Banque Cantonale'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 |
| Banque Cantonale vs. Graubuendner Kantonalbank | Banque Cantonale vs. Cembra Money Bank | Banque Cantonale vs. Cicor Technologies | Banque Cantonale vs. Berner Kantonalbank AG |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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