Correlation Between Walker Dunlop and Gran Tierra
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Gran Tierra 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 Gran Tierra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Gran Tierra Energy, you can compare the effects of market volatilities on Walker Dunlop and Gran Tierra 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 Gran Tierra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Gran Tierra.
Diversification Opportunities for Walker Dunlop and Gran Tierra
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Walker and Gran is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Gran Tierra Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gran Tierra Energy 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 Gran Tierra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gran Tierra Energy has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Gran Tierra go up and down completely randomly.
Pair Corralation between Walker Dunlop and Gran Tierra
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 0.62 times more return on investment than Gran Tierra. However, Walker Dunlop is 1.61 times less risky than Gran Tierra. It trades about 0.0 of its potential returns per unit of risk. Gran Tierra Energy is currently generating about -0.02 per unit of risk. If you would invest 10,261 in Walker Dunlop on January 25, 2024 and sell it today you would lose (857.00) from holding Walker Dunlop or give up 8.35% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Walker Dunlop vs. Gran Tierra Energy
Performance |
Timeline |
Walker Dunlop |
Gran Tierra Energy |
Walker Dunlop and Gran Tierra Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Walker Dunlop and Gran Tierra
The main advantage of trading using opposite Walker Dunlop and Gran Tierra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Gran Tierra 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 Gran Tierra will offset losses from the drop in Gran Tierra'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 |
Gran Tierra vs. Permian Resources | Gran Tierra vs. PEDEVCO Corp | Gran Tierra vs. Crescent Point Energy | Gran Tierra vs. Vermilion Energy |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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