Correlation Between Walker Dunlop and HANetf II

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

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

Diversification Opportunities for Walker Dunlop and HANetf II

-0.44

Correlation Coefficient

Walker Dunlop  HANetf II

Very good diversification

The 3 months correlation between Walker and HANetf is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and HANetf II ICAV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HANetf II ICAV 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 HANetf II. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HANetf II ICAV has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and HANetf II go up and down completely randomly.

Pair Corralation between Walker Dunlop and HANetf II

Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 2.3 times less return on investment than HANetf II. In addition to that, Walker Dunlop is 4.54 times more volatile than HANetf II ICAV. It trades about 0.02 of its total potential returns per unit of risk. HANetf II ICAV is currently generating about 0.18 per unit of volatility. If you would invest  713.00  in HANetf II ICAV on October 8, 2024 and sell it today you would earn a total of  37.00  from holding HANetf II ICAV or generate 5.19% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	11.69%
Values	Daily Returns

Walker Dunlop  vs.  HANetf II ICAV

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.

HANetf II ICAV

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in HANetf II ICAV are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound primary indicators, HANetf II is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Walker Dunlop and HANetf II

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

The idea behind Walker Dunlop and HANetf II ICAV 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.