Correlation Between Walker Dunlop and Paragon GmbH

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

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

Diversification Opportunities for Walker Dunlop and Paragon GmbH

0.05

Correlation Coefficient

Walker Dunlop  Paragon GmbH

Significant diversification

The 3 months correlation between Walker and Paragon is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and paragon GmbH Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on paragon GmbH 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 Paragon GmbH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of paragon GmbH has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Paragon GmbH go up and down completely randomly.

Pair Corralation between Walker Dunlop and Paragon GmbH

Allowing for the 90-day total investment horizon Walker Dunlop is expected to under-perform the Paragon GmbH. But the stock apears to be less risky and, when comparing its historical volatility, Walker Dunlop is 2.9 times less risky than Paragon GmbH. The stock trades about -0.1 of its potential returns per unit of risk. The paragon GmbH Co is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  188.00  in paragon GmbH Co on October 23, 2024 and sell it today you would earn a total of  7.00  from holding paragon GmbH Co or generate 3.72% return on investment over 90 days.

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

Walker Dunlop  vs.  paragon GmbH Co

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 weak performance in the last few months, the Stock's fundamental indicators remain rather sound which may send shares a bit higher in February 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

paragon GmbH

Risk-Adjusted Performance

3 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in paragon GmbH Co are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Paragon GmbH reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Walker Dunlop and Paragon GmbH

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

The idea behind Walker Dunlop and paragon GmbH Co 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.