Correlation Between AerCap Holdings and Walker Dunlop
Can any of the company-specific risk be diversified away by investing in both AerCap Holdings and Walker Dunlop 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 AerCap Holdings and Walker Dunlop into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AerCap Holdings NV and Walker Dunlop, you can compare the effects of market volatilities on AerCap Holdings and Walker Dunlop 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 AerCap Holdings with a short position of Walker Dunlop. Check out your portfolio center. Please also check ongoing floating volatility patterns of AerCap Holdings and Walker Dunlop.
Diversification Opportunities for AerCap Holdings and Walker Dunlop
-0.88 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AerCap and Walker is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding AerCap Holdings NV and Walker Dunlop in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Walker Dunlop and AerCap Holdings 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 AerCap Holdings NV are associated (or correlated) with Walker Dunlop. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Walker Dunlop has no effect on the direction of AerCap Holdings i.e., AerCap Holdings and Walker Dunlop go up and down completely randomly.
Pair Corralation between AerCap Holdings and Walker Dunlop
Considering the 90-day investment horizon AerCap Holdings NV is expected to generate 0.68 times more return on investment than Walker Dunlop. However, AerCap Holdings NV is 1.46 times less risky than Walker Dunlop. It trades about 0.15 of its potential returns per unit of risk. Walker Dunlop is currently generating about -0.19 per unit of risk. If you would invest 12,203 in AerCap Holdings NV on September 12, 2025 and sell it today you would earn a total of 1,773 from holding AerCap Holdings NV or generate 14.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AerCap Holdings NV vs. Walker Dunlop
Performance |
| Timeline |
| AerCap Holdings NV |
| Walker Dunlop |
AerCap Holdings and Walker Dunlop Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AerCap Holdings and Walker Dunlop
The main advantage of trading using opposite AerCap Holdings and Walker Dunlop positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AerCap Holdings position performs unexpectedly, Walker Dunlop 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 Walker Dunlop will offset losses from the drop in Walker Dunlop's long position.| AerCap Holdings vs. Fortress Transp Infra | AerCap Holdings vs. Curtiss Wright | AerCap Holdings vs. Elbit Systems | AerCap Holdings vs. Veralto |
| Walker Dunlop vs. Sezzle Inc | Walker Dunlop vs. Enova International | Walker Dunlop vs. Banc of California, | Walker Dunlop vs. Bread Financial Holdings |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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