Correlation Between Walker Dunlop and VIB Vermgen

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

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

Diversification Opportunities for Walker Dunlop and VIB Vermgen

0.56

Correlation Coefficient

Walker Dunlop  VIB Vermgen

Very weak diversification

The 3 months correlation between Walker and VIB is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and VIB Vermgen AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VIB Vermgen AG 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 VIB Vermgen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VIB Vermgen AG has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and VIB Vermgen go up and down completely randomly.

Pair Corralation between Walker Dunlop and VIB Vermgen

Allowing for the 90-day total investment horizon Walker Dunlop is expected to under-perform the VIB Vermgen. In addition to that, Walker Dunlop is 1.3 times more volatile than VIB Vermgen AG. It trades about -0.09 of its total potential returns per unit of risk. VIB Vermgen AG is currently generating about -0.02 per unit of volatility. If you would invest  995.00  in VIB Vermgen AG on December 27, 2024 and sell it today you would lose (27.00) from holding VIB Vermgen AG or give up 2.71% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	96.83%
Values	Daily Returns

Walker Dunlop  vs.  VIB Vermgen AG

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.

VIB Vermgen AG

Risk-Adjusted Performance

Very Weak

Over the last 90 days VIB Vermgen AG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, VIB Vermgen is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Walker Dunlop and VIB Vermgen

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

The idea behind Walker Dunlop and VIB Vermgen AG 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.