Correlation Between Walker Dunlop and Airports
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Airports 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 Airports into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Airports of Thailand, you can compare the effects of market volatilities on Walker Dunlop and Airports 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 Airports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Airports.
Diversification Opportunities for Walker Dunlop and Airports
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Walker and Airports is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Airports of Thailand in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Airports of Thailand 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 Airports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Airports of Thailand has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Airports go up and down completely randomly.
Pair Corralation between Walker Dunlop and Airports
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 0.9 times more return on investment than Airports. However, Walker Dunlop is 1.11 times less risky than Airports. It trades about -0.19 of its potential returns per unit of risk. Airports of Thailand is currently generating about -0.22 per unit of risk. If you would invest 10,934 in Walker Dunlop on December 2, 2024 and sell it today you would lose (2,367) from holding Walker Dunlop or give up 21.65% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 83.61% |
Values | Daily Returns |
Walker Dunlop vs. Airports of Thailand
Performance |
Timeline |
Walker Dunlop |
Airports of Thailand |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Walker Dunlop and Airports Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Walker Dunlop and Airports
The main advantage of trading using opposite Walker Dunlop and Airports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Airports 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 Airports will offset losses from the drop in Airports' long position.Walker Dunlop vs. Mr Cooper Group | Walker Dunlop vs. Velocity Financial Llc | Walker Dunlop vs. Security National Financial | Walker Dunlop vs. Encore Capital Group |
Airports vs. CP ALL Public | Airports vs. PTT Public | Airports vs. Bangkok Dusit Medical | Airports vs. The Siam Cement |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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