Correlation Between Walker Dunlop and ZTO Express
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and ZTO Express 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 ZTO Express into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and ZTO Express, you can compare the effects of market volatilities on Walker Dunlop and ZTO Express 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 ZTO Express. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and ZTO Express.
Diversification Opportunities for Walker Dunlop and ZTO Express
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Walker and ZTO is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and ZTO Express in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZTO Express 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 ZTO Express. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZTO Express has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and ZTO Express go up and down completely randomly.
Pair Corralation between Walker Dunlop and ZTO Express
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 0.81 times more return on investment than ZTO Express. However, Walker Dunlop is 1.23 times less risky than ZTO Express. It trades about 0.08 of its potential returns per unit of risk. ZTO Express is currently generating about -0.05 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 | Weak |
Accuracy | 96.18% |
Values | Daily Returns |
Walker Dunlop vs. ZTO Express
Performance |
Timeline |
Walker Dunlop |
ZTO Express |
Walker Dunlop and ZTO Express Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Walker Dunlop and ZTO Express
The main advantage of trading using opposite Walker Dunlop and ZTO Express positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, ZTO Express 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 ZTO Express will offset losses from the drop in ZTO Express' 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 |
ZTO Express vs. Pure Storage | ZTO Express vs. Plastic Omnium | ZTO Express vs. Datang International Power | ZTO Express vs. Compagnie Plastic Omnium |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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