Correlation Between Walker Dunlop and ProShares Short
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and ProShares Short 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 ProShares Short into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and ProShares Short FTSE, you can compare the effects of market volatilities on Walker Dunlop and ProShares Short 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 ProShares Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and ProShares Short.
Diversification Opportunities for Walker Dunlop and ProShares Short
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Walker and ProShares is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and ProShares Short FTSE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Short FTSE 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 ProShares Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares Short FTSE has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and ProShares Short go up and down completely randomly.
Pair Corralation between Walker Dunlop and ProShares Short
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 2.47 times less return on investment than ProShares Short. But when comparing it to its historical volatility, Walker Dunlop is 1.66 times less risky than ProShares Short. It trades about 0.05 of its potential returns per unit of risk. ProShares Short FTSE is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,379 in ProShares Short FTSE on September 1, 2024 and sell it today you would earn a total of 48.00 from holding ProShares Short FTSE or generate 3.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Walker Dunlop vs. ProShares Short FTSE
Performance |
| Timeline |
| Walker Dunlop |
| ProShares Short FTSE |
Walker Dunlop and ProShares Short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and ProShares Short
The main advantage of trading using opposite Walker Dunlop and ProShares Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, ProShares Short 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 ProShares Short will offset losses from the drop in ProShares Short'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 |
| ProShares Short vs. ProShares Ultra FTSE | ProShares Short vs. ProShares Short MSCI | ProShares Short vs. ProShares Short MSCI | ProShares Short vs. ProShares Short Real |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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