Correlation Between Walker Dunlop and Kinetics Market

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

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

Diversification Opportunities for Walker Dunlop and Kinetics Market

-0.25

Correlation Coefficient

Walker Dunlop  Kinetics Market

Very good diversification

The 3 months correlation between Walker and Kinetics is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Kinetics Market Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinetics Market Oppo 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 Kinetics Market. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinetics Market Oppo has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Kinetics Market go up and down completely randomly.

Pair Corralation between Walker Dunlop and Kinetics Market

Allowing for the 90-day total investment horizon Walker Dunlop is expected to under-perform the Kinetics Market. In addition to that, Walker Dunlop is 1.0 times more volatile than Kinetics Market Opportunities. It trades about -0.08 of its total potential returns per unit of risk. Kinetics Market Opportunities is currently generating about 0.08 per unit of volatility. If you would invest  7,799  in Kinetics Market Opportunities on December 29, 2024 and sell it today you would earn a total of  722.00  from holding Kinetics Market Opportunities or generate 9.26% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

Walker Dunlop  vs.  Kinetics Market Opportunities

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.

Kinetics Market Oppo

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Kinetics Market Opportunities are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Kinetics Market may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Walker Dunlop and Kinetics Market

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

The idea behind Walker Dunlop and Kinetics Market Opportunities 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.