Correlation Between Walker Dunlop and Oxford Lane
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Oxford Lane 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 Oxford Lane into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Oxford Lane Capital, you can compare the effects of market volatilities on Walker Dunlop and Oxford Lane 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 Oxford Lane. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Oxford Lane.
Diversification Opportunities for Walker Dunlop and Oxford Lane
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Walker and Oxford is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Oxford Lane Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oxford Lane Capital 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 Oxford Lane. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oxford Lane Capital has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Oxford Lane go up and down completely randomly.
Pair Corralation between Walker Dunlop and Oxford Lane
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 3.53 times more return on investment than Oxford Lane. However, Walker Dunlop is 3.53 times more volatile than Oxford Lane Capital. It trades about 0.06 of its potential returns per unit of risk. Oxford Lane Capital is currently generating about 0.09 per unit of risk. If you would invest 6,974 in Walker Dunlop on September 26, 2024 and sell it today you would earn a total of 2,853 from holding Walker Dunlop or generate 40.91% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Walker Dunlop vs. Oxford Lane Capital
Performance |
Timeline |
Walker Dunlop |
Oxford Lane Capital |
Walker Dunlop and Oxford Lane Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Walker Dunlop and Oxford Lane
The main advantage of trading using opposite Walker Dunlop and Oxford Lane positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Oxford Lane 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 Oxford Lane will offset losses from the drop in Oxford Lane's long position.Walker Dunlop vs. Loandepot | Walker Dunlop vs. Mr Cooper Group | Walker Dunlop vs. PennyMac Finl Svcs | Walker Dunlop vs. Guild Holdings Co |
Oxford Lane vs. Aquagold International | Oxford Lane vs. Morningstar Unconstrained Allocation | Oxford Lane vs. Thrivent High Yield | Oxford Lane vs. Via Renewables |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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