Correlation Between Walker Dunlop and New Economy
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and New Economy 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 New Economy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and New Economy Fund, you can compare the effects of market volatilities on Walker Dunlop and New Economy 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 New Economy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and New Economy.
Diversification Opportunities for Walker Dunlop and New Economy
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Walker and New is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and New Economy Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New Economy Fund 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 New Economy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New Economy Fund has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and New Economy go up and down completely randomly.
Pair Corralation between Walker Dunlop and New Economy
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 2.76 times more return on investment than New Economy. However, Walker Dunlop is 2.76 times more volatile than New Economy Fund. It trades about -0.06 of its potential returns per unit of risk. New Economy Fund is currently generating about -0.22 per unit of risk. If you would invest 9,298 in Walker Dunlop on January 20, 2024 and sell it today you would lose (300.00) from holding Walker Dunlop or give up 3.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Walker Dunlop vs. New Economy Fund
Performance |
| Timeline |
| Walker Dunlop |
| New Economy Fund |
Walker Dunlop and New Economy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and New Economy
The main advantage of trading using opposite Walker Dunlop and New Economy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, New Economy 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 New Economy will offset losses from the drop in New Economy's long position.| Walker Dunlop vs. Ocwen Financial | Walker Dunlop vs. Encore Capital Group | Walker Dunlop vs. PennyMac Finl Svcs | Walker Dunlop vs. Timbercreek Financial Corp |
| New Economy vs. New World Fund | New Economy vs. American Mutual Fund | New Economy vs. American Mutual Fund | New Economy vs. American Funds Income |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |