Correlation Between Walker Dunlop and Yunji

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

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

Diversification Opportunities for Walker Dunlop and Yunji

0.29

Correlation Coefficient

Walker Dunlop  Yunji

Modest diversification

The 3 months correlation between Walker and Yunji is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Yunji Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yunji Inc 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 Yunji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yunji Inc has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Yunji go up and down completely randomly.

Pair Corralation between Walker Dunlop and Yunji

Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 0.37 times more return on investment than Yunji. However, Walker Dunlop is 2.73 times less risky than Yunji. It trades about -0.04 of its potential returns per unit of risk. Yunji Inc is currently generating about -0.04 per unit of risk. If you would invest  9,804  in Walker Dunlop on March 2, 2024 and sell it today you would lose (334.00) from holding Walker Dunlop or give up 3.41% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Walker Dunlop  vs.  Yunji Inc

Walker Dunlop

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Walker Dunlop are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound fundamental indicators, Walker Dunlop is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Yunji Inc

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Yunji Inc are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Even with relatively steady forward-looking indicators, Yunji is not utilizing all of its potentials. The recent stock price chaos, may contribute to medium-term losses for the stakeholders.

Pair Trading with Walker Dunlop and Yunji

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

The idea behind Walker Dunlop and Yunji Inc 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.