Correlation Between Walker Dunlop and Bts Enhanced
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Bts Enhanced 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 Bts Enhanced into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Bts Enhanced Equity, you can compare the effects of market volatilities on Walker Dunlop and Bts Enhanced 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 Bts Enhanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Bts Enhanced.
Diversification Opportunities for Walker Dunlop and Bts Enhanced
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Walker and Bts is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Bts Enhanced Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bts Enhanced Equity 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 Bts Enhanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bts Enhanced Equity has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Bts Enhanced go up and down completely randomly.
Pair Corralation between Walker Dunlop and Bts Enhanced
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 3.61 times more return on investment than Bts Enhanced. However, Walker Dunlop is 3.61 times more volatile than Bts Enhanced Equity. It trades about 0.2 of its potential returns per unit of risk. Bts Enhanced Equity is currently generating about 0.16 per unit of risk. If you would invest 7,048 in Walker Dunlop on April 29, 2025 and sell it today you would earn a total of 580.00 from holding Walker Dunlop or generate 8.23% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Walker Dunlop vs. Bts Enhanced Equity
Performance |
Timeline |
Walker Dunlop |
Bts Enhanced Equity |
Walker Dunlop and Bts Enhanced Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Walker Dunlop and Bts Enhanced
The main advantage of trading using opposite Walker Dunlop and Bts Enhanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Bts Enhanced 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 Bts Enhanced will offset losses from the drop in Bts Enhanced's long position.Walker Dunlop vs. Encore Capital Group | Walker Dunlop vs. Greystone Housing Impact | Walker Dunlop vs. Kinsale Capital Group | Walker Dunlop vs. Live Oak Bancshares |
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Check out your portfolio center.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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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