Correlation Between Walker Dunlop and Guggenheim Limited

Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Guggenheim Limited 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 Guggenheim Limited into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Walker Dunlop and Guggenheim Limited Duration, you can compare the effects of market volatilities on Walker Dunlop and Guggenheim Limited 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 Guggenheim Limited. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Guggenheim Limited.

Diversification Opportunities for Walker Dunlop and Guggenheim Limited

0.0

Correlation Coefficient

Walker Dunlop  Guggenheim Limited

Pay attention - limited upside

The 3 months correlation between Walker and GUGGENHEIM is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Guggenheim Limited Duration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guggenheim Limited 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 Guggenheim Limited. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guggenheim Limited has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Guggenheim Limited go up and down completely randomly.

Pair Corralation between Walker Dunlop and Guggenheim Limited

If you would invest  9,261  in Walker Dunlop on February 26, 2024 and sell it today you would earn a total of  262.00  from holding Walker Dunlop or generate 2.83% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	4.55%
Values	Daily Returns

Walker Dunlop  vs.  Guggenheim Limited Duration

Walker Dunlop

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Walker Dunlop are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound fundamental indicators, Walker Dunlop is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Guggenheim Limited

Risk-Adjusted Performance

0 of 100

Good

Over the last 90 days Guggenheim Limited Duration has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong fundamental indicators, Guggenheim Limited is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Walker Dunlop and Guggenheim Limited

The main advantage of trading using opposite Walker Dunlop and Guggenheim Limited positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Guggenheim Limited 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 Guggenheim Limited will offset losses from the drop in Guggenheim Limited's long position.

The idea behind Walker Dunlop and Guggenheim Limited Duration pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.