Correlation Between Walker Dunlop and IShares AEX

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

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

Diversification Opportunities for Walker Dunlop and IShares AEX

-0.44

Correlation Coefficient

Walker Dunlop  IShares AEX

Very good diversification

The 3 months correlation between Walker and IShares is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and iShares AEX UCITS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares AEX UCITS 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 IShares AEX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares AEX UCITS has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and IShares AEX go up and down completely randomly.

Pair Corralation between Walker Dunlop and IShares AEX

Allowing for the 90-day total investment horizon Walker Dunlop is expected to under-perform the IShares AEX. In addition to that, Walker Dunlop is 2.81 times more volatile than iShares AEX UCITS. It trades about -0.08 of its total potential returns per unit of risk. iShares AEX UCITS is currently generating about 0.09 per unit of volatility. If you would invest  8,698  in iShares AEX UCITS on December 29, 2024 and sell it today you would earn a total of  349.00  from holding iShares AEX UCITS or generate 4.01% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	93.85%
Values	Daily Returns

Walker Dunlop  vs.  iShares AEX UCITS

Walker Dunlop

Risk-Adjusted Performance

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 latest weak performance, the Stock's fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

iShares AEX UCITS

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in iShares AEX UCITS are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, IShares AEX is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Walker Dunlop and IShares AEX

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

The idea behind Walker Dunlop and iShares AEX UCITS 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 Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..