Correlation Between Walker Dunlop and IShares Small
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and IShares Small 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 IShares Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and iShares Small Cap, you can compare the effects of market volatilities on Walker Dunlop and IShares Small 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 IShares Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and IShares Small.
Diversification Opportunities for Walker Dunlop and IShares Small
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Walker and IShares is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and iShares Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Small Cap 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 IShares Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Small Cap has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and IShares Small go up and down completely randomly.
Pair Corralation between Walker Dunlop and IShares Small
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 1.32 times more return on investment than IShares Small. However, Walker Dunlop is 1.32 times more volatile than iShares Small Cap. It trades about 0.08 of its potential returns per unit of risk. iShares Small Cap is currently generating about 0.1 per unit of risk. If you would invest 9,351 in Walker Dunlop on September 1, 2024 and sell it today you would earn a total of 1,667 from holding Walker Dunlop or generate 17.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Walker Dunlop vs. iShares Small Cap
Performance |
| Timeline |
| Walker Dunlop |
| iShares Small Cap |
Walker Dunlop and IShares Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and IShares Small
The main advantage of trading using opposite Walker Dunlop and IShares Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, IShares Small 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 IShares Small will offset losses from the drop in IShares Small'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 |
| IShares Small vs. iShares SPTSX Small | IShares Small vs. iShares Canadian Value | IShares Small vs. iShares Canadian Growth | IShares Small vs. iShares SPTSX Completion |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |