Correlation Between Walker Dunlop and Genesis Technology
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Genesis Technology 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 Genesis Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Genesis Technology, you can compare the effects of market volatilities on Walker Dunlop and Genesis Technology 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 Genesis Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Genesis Technology.
Diversification Opportunities for Walker Dunlop and Genesis Technology
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Walker and Genesis is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Genesis Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genesis Technology 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 Genesis Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genesis Technology has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Genesis Technology go up and down completely randomly.
Pair Corralation between Walker Dunlop and Genesis Technology
Allowing for the 90-day total investment horizon Walker Dunlop is expected to under-perform the Genesis Technology. In addition to that, Walker Dunlop is 2.03 times more volatile than Genesis Technology. It trades about -0.06 of its total potential returns per unit of risk. Genesis Technology is currently generating about 0.37 per unit of volatility. If you would invest 7,360 in Genesis Technology on January 20, 2024 and sell it today you would earn a total of 650.00 from holding Genesis Technology or generate 8.83% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Walker Dunlop vs. Genesis Technology
Performance |
Timeline |
Walker Dunlop |
Genesis Technology |
Walker Dunlop and Genesis Technology Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Walker Dunlop and Genesis Technology
The main advantage of trading using opposite Walker Dunlop and Genesis Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Genesis Technology 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 Genesis Technology will offset losses from the drop in Genesis Technology's long position.Walker Dunlop vs. Encore Capital Group | Walker Dunlop vs. Timbercreek Financial Corp | Walker Dunlop vs. Guild HoldingsCo |
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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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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