Correlation Between Walker Dunlop and Surya Fajar

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

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

Diversification Opportunities for Walker Dunlop and Surya Fajar

0.0

Correlation Coefficient

Walker Dunlop  Surya Fajar

Pay attention - limited upside

The 3 months correlation between Walker and Surya is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Surya Fajar Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Surya Fajar Capital 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 Surya Fajar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Surya Fajar Capital has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Surya Fajar go up and down completely randomly.

Pair Corralation between Walker Dunlop and Surya Fajar

If you would invest  10,537  in Walker Dunlop on June 29, 2024 and sell it today you would earn a total of  669.00  from holding Walker Dunlop or generate 6.35% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	4.55%
Values	Daily Returns

Walker Dunlop  vs.  Surya Fajar Capital

Walker Dunlop

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Walker Dunlop are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak fundamental indicators, Walker Dunlop exhibited solid returns over the last few months and may actually be approaching a breakup point.

Surya Fajar Capital

Risk-Adjusted Performance

0 of 100

OK

Over the last 90 days Surya Fajar Capital has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent forward-looking signals, Surya Fajar is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Walker Dunlop and Surya Fajar

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

The idea behind Walker Dunlop and Surya Fajar Capital 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.