Correlation Between Walker Dunlop and Hancock Whitney
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Hancock Whitney 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 Hancock Whitney into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Hancock Whitney Corp, you can compare the effects of market volatilities on Walker Dunlop and Hancock Whitney 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 Hancock Whitney. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Hancock Whitney.
Diversification Opportunities for Walker Dunlop and Hancock Whitney
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Walker and Hancock is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Hancock Whitney Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hancock Whitney Corp 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 Hancock Whitney. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hancock Whitney Corp has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Hancock Whitney go up and down completely randomly.
Pair Corralation between Walker Dunlop and Hancock Whitney
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 1.35 times more return on investment than Hancock Whitney. However, Walker Dunlop is 1.35 times more volatile than Hancock Whitney Corp. It trades about 0.08 of its potential returns per unit of risk. Hancock Whitney Corp is currently generating about -0.02 per unit of risk. 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 | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Walker Dunlop vs. Hancock Whitney Corp
Performance |
Timeline |
Walker Dunlop |
Hancock Whitney Corp |
Walker Dunlop and Hancock Whitney Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Walker Dunlop and Hancock Whitney
The main advantage of trading using opposite Walker Dunlop and Hancock Whitney positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Hancock Whitney 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 Hancock Whitney will offset losses from the drop in Hancock Whitney's long position.Walker Dunlop vs. Encore Capital Group | Walker Dunlop vs. Timbercreek Financial Corp | Walker Dunlop vs. Guild HoldingsCo |
Hancock Whitney vs. Home Bancorp | Hancock Whitney vs. First Business Financial | Hancock Whitney vs. LINKBANCORP | Hancock Whitney vs. Great Southern Bancorp |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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