Correlation Between Walker Dunlop and Ingram Micro

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

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

Diversification Opportunities for Walker Dunlop and Ingram Micro

-0.11

Correlation Coefficient

Walker Dunlop  Ingram Micro

Good diversification

The 3 months correlation between Walker and Ingram is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Ingram Micro Bilisim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ingram Micro Bilisim 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 Ingram Micro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ingram Micro Bilisim has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Ingram Micro go up and down completely randomly.

Pair Corralation between Walker Dunlop and Ingram Micro

Allowing for the 90-day total investment horizon Walker Dunlop is expected to under-perform the Ingram Micro. But the stock apears to be less risky and, when comparing its historical volatility, Walker Dunlop is 1.41 times less risky than Ingram Micro. The stock trades about -0.22 of its potential returns per unit of risk. The Ingram Micro Bilisim is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  42,200  in Ingram Micro Bilisim on October 7, 2024 and sell it today you would earn a total of  2,100  from holding Ingram Micro Bilisim or generate 4.98% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.35%
Values	Daily Returns

Walker Dunlop  vs.  Ingram Micro Bilisim

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 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.

Ingram Micro Bilisim

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Ingram Micro Bilisim are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong forward indicators, Ingram Micro is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Walker Dunlop and Ingram Micro

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

The idea behind Walker Dunlop and Ingram Micro Bilisim 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.