Correlation Between Walker Dunlop and VanEck Global

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

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

Diversification Opportunities for Walker Dunlop and VanEck Global

0.01

Correlation Coefficient

Walker Dunlop  VanEck Global

Significant diversification

The 3 months correlation between Walker and VanEck is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and VanEck Global Clean in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VanEck Global Clean 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 VanEck Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VanEck Global Clean has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and VanEck Global go up and down completely randomly.

Pair Corralation between Walker Dunlop and VanEck Global

Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 1.47 times more return on investment than VanEck Global. However, Walker Dunlop is 1.47 times more volatile than VanEck Global Clean. It trades about 0.08 of its potential returns per unit of risk. VanEck Global Clean is currently generating about -0.06 per unit of risk. If you would invest  6,195  in Walker Dunlop on August 26, 2024 and sell it today you would earn a total of  4,654  from holding Walker Dunlop or generate 75.13% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.75%
Values	Daily Returns

Walker Dunlop  vs.  VanEck Global Clean

Walker Dunlop

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Walker Dunlop are ranked lower than 1 (%) 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 latest stock price tumult, may contribute to shorter-term losses for the shareholders.

VanEck Global Clean

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days VanEck Global Clean has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Etf's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the exchange-traded fund private investors.

Pair Trading with Walker Dunlop and VanEck Global

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

The idea behind Walker Dunlop and VanEck Global Clean 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.