Correlation Between Walker Dunlop and Baxter International
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Baxter International 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 Baxter International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Baxter International, you can compare the effects of market volatilities on Walker Dunlop and Baxter International 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 Baxter International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Baxter International.
Diversification Opportunities for Walker Dunlop and Baxter International
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Walker and Baxter is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Baxter International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baxter International 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 Baxter International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baxter International has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Baxter International go up and down completely randomly.
Pair Corralation between Walker Dunlop and Baxter International
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 1.1 times more return on investment than Baxter International. However, Walker Dunlop is 1.1 times more volatile than Baxter International. It trades about 0.04 of its potential returns per unit of risk. Baxter International is currently generating about -0.2 per unit of risk. If you would invest 9,560 in Walker Dunlop on February 23, 2024 and sell it today you would earn a total of 313.00 from holding Walker Dunlop or generate 3.27% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Walker Dunlop vs. Baxter International
Performance |
Timeline |
Walker Dunlop |
Baxter International |
Walker Dunlop and Baxter International Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Walker Dunlop and Baxter International
The main advantage of trading using opposite Walker Dunlop and Baxter International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Baxter International 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 Baxter International will offset losses from the drop in Baxter International'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 |
Baxter International vs. Embecta Corp | Baxter International vs. West Pharmaceutical Services | Baxter International vs. ResMed Inc | Baxter International vs. The Cooper Companies |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Content Syndication Quickly integrate customizable finance content to your own investment portal | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |