Correlation Between Walker Dunlop and Opko Health
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Opko Health 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 Opko Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Opko Health, you can compare the effects of market volatilities on Walker Dunlop and Opko Health 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 Opko Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Opko Health.
Diversification Opportunities for Walker Dunlop and Opko Health
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Walker and Opko is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Opko Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Opko Health 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 Opko Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Opko Health has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Opko Health go up and down completely randomly.
Pair Corralation between Walker Dunlop and Opko Health
Allowing for the 90-day total investment horizon Walker Dunlop is expected to under-perform the Opko Health. In addition to that, Walker Dunlop is 1.31 times more volatile than Opko Health. It trades about -0.28 of its total potential returns per unit of risk. Opko Health is currently generating about -0.23 per unit of volatility. If you would invest 158.00 in Opko Health on October 8, 2024 and sell it today you would lose (10.00) from holding Opko Health or give up 6.33% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 95.0% |
Values | Daily Returns |
Walker Dunlop vs. Opko Health
Performance |
Timeline |
Walker Dunlop |
Opko Health |
Walker Dunlop and Opko Health Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Walker Dunlop and Opko Health
The main advantage of trading using opposite Walker Dunlop and Opko Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Opko Health 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 Opko Health will offset losses from the drop in Opko Health's long position.Walker Dunlop vs. Mr Cooper Group | Walker Dunlop vs. Velocity Financial Llc | Walker Dunlop vs. Security National Financial | Walker Dunlop vs. Encore Capital Group |
Opko Health vs. Caredx Inc | Opko Health vs. Castle Biosciences | Opko Health vs. Twist Bioscience Corp | Opko Health vs. Biodesix |
Check out your portfolio center.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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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