Correlation Between Walker Dunlop and Delta Djakarta

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

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

Diversification Opportunities for Walker Dunlop and Delta Djakarta

0.19

Correlation Coefficient

Walker Dunlop  Delta Djakarta

Average diversification

The 3 months correlation between Walker and Delta is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Delta Djakarta Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delta Djakarta Tbk 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 Delta Djakarta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delta Djakarta Tbk has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Delta Djakarta go up and down completely randomly.

Pair Corralation between Walker Dunlop and Delta Djakarta

Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 1.22 times more return on investment than Delta Djakarta. However, Walker Dunlop is 1.22 times more volatile than Delta Djakarta Tbk. It trades about 0.06 of its potential returns per unit of risk. Delta Djakarta Tbk is currently generating about -0.13 per unit of risk. If you would invest  10,435  in Walker Dunlop on September 3, 2024 and sell it today you would earn a total of  583.00  from holding Walker Dunlop or generate 5.59% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Walker Dunlop  vs.  Delta Djakarta Tbk

Walker Dunlop

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Walker Dunlop are ranked lower than 4 (%) 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.

Delta Djakarta Tbk

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Delta Djakarta Tbk has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's forward-looking signals remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Pair Trading with Walker Dunlop and Delta Djakarta

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

The idea behind Walker Dunlop and Delta Djakarta Tbk 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.