Correlation Between Walker Dunlop and Uniphar Group

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

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

Diversification Opportunities for Walker Dunlop and Uniphar Group

-0.66

Correlation Coefficient

Walker Dunlop  Uniphar Group

Excellent diversification

The 3 months correlation between Walker and Uniphar is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Uniphar Group PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uniphar Group PLC 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 Uniphar Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Uniphar Group PLC has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Uniphar Group go up and down completely randomly.

Pair Corralation between Walker Dunlop and Uniphar Group

Allowing for the 90-day total investment horizon Walker Dunlop is expected to under-perform the Uniphar Group. But the stock apears to be less risky and, when comparing its historical volatility, Walker Dunlop is 1.43 times less risky than Uniphar Group. The stock trades about -0.08 of its potential returns per unit of risk. The Uniphar Group PLC is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  212.00  in Uniphar Group PLC on December 29, 2024 and sell it today you would earn a total of  67.00  from holding Uniphar Group PLC or generate 31.6% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	93.85%
Values	Daily Returns

Walker Dunlop  vs.  Uniphar Group PLC

Walker Dunlop

Risk-Adjusted Performance

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 latest weak performance, the Stock's fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Uniphar Group PLC

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Uniphar Group PLC are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Uniphar Group reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Walker Dunlop and Uniphar Group

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

The idea behind Walker Dunlop and Uniphar Group PLC 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.