Correlation Between Walker Dunlop and ZKH Group
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and ZKH Group 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 ZKH Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and ZKH Group Limited, you can compare the effects of market volatilities on Walker Dunlop and ZKH Group 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 ZKH Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and ZKH Group.
Diversification Opportunities for Walker Dunlop and ZKH Group
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Walker and ZKH is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and ZKH Group Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZKH Group Limited 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 ZKH Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZKH Group Limited has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and ZKH Group go up and down completely randomly.
Pair Corralation between Walker Dunlop and ZKH Group
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 0.36 times more return on investment than ZKH Group. However, Walker Dunlop is 2.82 times less risky than ZKH Group. It trades about 0.04 of its potential returns per unit of risk. ZKH Group Limited is currently generating about -0.06 per unit of risk. If you would invest 7,970 in Walker Dunlop on August 27, 2024 and sell it today you would earn a total of 2,879 from holding Walker Dunlop or generate 36.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 47.98% |
| Values | Daily Returns |
Walker Dunlop vs. ZKH Group Limited
Performance |
| Timeline |
| Walker Dunlop |
| ZKH Group Limited |
Walker Dunlop and ZKH Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and ZKH Group
The main advantage of trading using opposite Walker Dunlop and ZKH Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, ZKH Group 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 ZKH Group will offset losses from the drop in ZKH Group'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 |
| ZKH Group vs. Tyson Foods | ZKH Group vs. EMCOR Group | ZKH Group vs. Arm Holdings plc | ZKH Group vs. Taiwan Semiconductor Manufacturing |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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