Correlation Between Walker Dunlop and Catalyst Exceed

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

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

Diversification Opportunities for Walker Dunlop and Catalyst Exceed

0.14

Correlation Coefficient

Walker Dunlop  Catalyst Exceed

Average diversification

The 3 months correlation between Walker and Catalyst is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Catalyst Exceed Defined in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalyst Exceed Defined 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 Catalyst Exceed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalyst Exceed Defined has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Catalyst Exceed go up and down completely randomly.

Pair Corralation between Walker Dunlop and Catalyst Exceed

Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 27.34 times less return on investment than Catalyst Exceed. In addition to that, Walker Dunlop is 1.97 times more volatile than Catalyst Exceed Defined. It trades about 0.0 of its total potential returns per unit of risk. Catalyst Exceed Defined is currently generating about 0.15 per unit of volatility. If you would invest  1,252  in Catalyst Exceed Defined on September 13, 2024 and sell it today you would earn a total of  96.00  from holding Catalyst Exceed Defined or generate 7.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Walker Dunlop  vs.  Catalyst Exceed Defined

Walker Dunlop

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Walker Dunlop has generated negative risk-adjusted returns adding no value to investors with long positions. 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.

Catalyst Exceed Defined

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Catalyst Exceed Defined are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Catalyst Exceed may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Walker Dunlop and Catalyst Exceed

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

The idea behind Walker Dunlop and Catalyst Exceed Defined 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.

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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.