Correlation Between Walker Dunlop and SKAGEN M
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and SKAGEN M 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 SKAGEN M into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and SKAGEN m, you can compare the effects of market volatilities on Walker Dunlop and SKAGEN M 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 SKAGEN M. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and SKAGEN M.
Diversification Opportunities for Walker Dunlop and SKAGEN M
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Walker and SKAGEN is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and SKAGEN m in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SKAGEN m 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 SKAGEN M. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SKAGEN m has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and SKAGEN M go up and down completely randomly.
Pair Corralation between Walker Dunlop and SKAGEN M
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 3.03 times more return on investment than SKAGEN M. However, Walker Dunlop is 3.03 times more volatile than SKAGEN m. It trades about -0.02 of its potential returns per unit of risk. SKAGEN m is currently generating about -0.3 per unit of risk. If you would invest 9,520 in Walker Dunlop on January 26, 2024 and sell it today you would lose (116.00) from holding Walker Dunlop or give up 1.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 90.48% |
| Values | Daily Returns |
Walker Dunlop vs. SKAGEN m
Performance |
| Timeline |
| Walker Dunlop |
| SKAGEN m |
Walker Dunlop and SKAGEN M Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and SKAGEN M
The main advantage of trading using opposite Walker Dunlop and SKAGEN M positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, SKAGEN M 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 SKAGEN M will offset losses from the drop in SKAGEN M's long position.| Walker Dunlop vs. Mr Cooper Group | Walker Dunlop vs. Ocwen Financial | Walker Dunlop vs. Velocity FinancialLlc | Walker Dunlop vs. Security National Financial |
| SKAGEN M vs. Novo Nordisk AS | SKAGEN M vs. Nordea Bank Abp | SKAGEN M vs. DSV Panalpina AS | SKAGEN M vs. AP Mller |
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 AI Investment Finder module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| AI Investment Finder Use AI to screen and filter profitable investment opportunities | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |