Correlation Between Walker Dunlop and Powszechna Kasa

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

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

Diversification Opportunities for Walker Dunlop and Powszechna Kasa

-0.07

Correlation Coefficient

Walker Dunlop  Powszechna Kasa

Good diversification

The 3 months correlation between Walker and Powszechna is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Powszechna Kasa Oszczednosci in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Powszechna Kasa Oszc 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 Powszechna Kasa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Powszechna Kasa Oszc has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Powszechna Kasa go up and down completely randomly.

Pair Corralation between Walker Dunlop and Powszechna Kasa

Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 0.98 times more return on investment than Powszechna Kasa. However, Walker Dunlop is 1.02 times less risky than Powszechna Kasa. It trades about -0.04 of its potential returns per unit of risk. Powszechna Kasa Oszczednosci is currently generating about -0.06 per unit of risk. If you would invest  9,738  in Walker Dunlop on October 23, 2024 and sell it today you would lose (204.00) from holding Walker Dunlop or give up 2.09% of portfolio value over 90 days.

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

Walker Dunlop  vs.  Powszechna Kasa Oszczednosci

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.

Powszechna Kasa Oszc

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Powszechna Kasa Oszczednosci are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady forward-looking signals, Powszechna Kasa may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Walker Dunlop and Powszechna Kasa

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

The idea behind Walker Dunlop and Powszechna Kasa Oszczednosci 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.