Correlation Between Walker Dunlop and Intech Us

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

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

Diversification Opportunities for Walker Dunlop and Intech Us

0.45

Correlation Coefficient

Walker Dunlop  Intech Us

Very weak diversification

The 3 months correlation between Walker and Intech is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Intech Managed Volatility in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intech Managed Volatility 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 Intech Us. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intech Managed Volatility has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Intech Us go up and down completely randomly.

Pair Corralation between Walker Dunlop and Intech Us

Allowing for the 90-day total investment horizon Walker Dunlop is expected to under-perform the Intech Us. In addition to that, Walker Dunlop is 2.04 times more volatile than Intech Managed Volatility. It trades about -0.08 of its total potential returns per unit of risk. Intech Managed Volatility is currently generating about -0.06 per unit of volatility. If you would invest  1,195  in Intech Managed Volatility on December 28, 2024 and sell it today you would lose (44.00) from holding Intech Managed Volatility or give up 3.68% of portfolio value over 90 days.

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

Walker Dunlop  vs.  Intech Managed Volatility

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.

Intech Managed Volatility

Risk-Adjusted Performance

Very Weak

Over the last 90 days Intech Managed Volatility has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Intech Us is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Walker Dunlop and Intech Us

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

The idea behind Walker Dunlop and Intech Managed Volatility 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.