Correlation Between Walker Dunlop and MAYS J

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

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

Diversification Opportunities for Walker Dunlop and MAYS J

-0.35

Correlation Coefficient

Walker Dunlop  MAYS J

Very good diversification

The 3 months correlation between Walker and MAYS is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and MAYS J W in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MAYS J W 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 MAYS J. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MAYS J W has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and MAYS J go up and down completely randomly.

Pair Corralation between Walker Dunlop and MAYS J

If you would invest  10,267  in Walker Dunlop on August 1, 2024 and sell it today you would earn a total of  928.00  from holding Walker Dunlop or generate 9.04% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	11.11%
Values	Daily Returns

Walker Dunlop  vs.  MAYS J W

Walker Dunlop

Risk-Adjusted Performance

7 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Walker Dunlop are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak fundamental indicators, Walker Dunlop may actually be approaching a critical reversion point that can send shares even higher in November 2024.

MAYS J W

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Walker Dunlop and MAYS J

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

The idea behind Walker Dunlop and MAYS J W 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.