Correlation Between Walker Dunlop and BayCom Corp
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and BayCom Corp 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 BayCom Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and BayCom Corp, you can compare the effects of market volatilities on Walker Dunlop and BayCom Corp 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 BayCom Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and BayCom Corp.
Diversification Opportunities for Walker Dunlop and BayCom Corp
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Walker and BayCom is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and BayCom Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BayCom Corp 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 BayCom Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BayCom Corp has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and BayCom Corp go up and down completely randomly.
Pair Corralation between Walker Dunlop and BayCom Corp
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 1.25 times more return on investment than BayCom Corp. However, Walker Dunlop is 1.25 times more volatile than BayCom Corp. It trades about 0.19 of its potential returns per unit of risk. BayCom Corp is currently generating about 0.15 per unit of risk. If you would invest 6,645 in Walker Dunlop on June 1, 2025 and sell it today you would earn a total of 1,860 from holding Walker Dunlop or generate 27.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walker Dunlop vs. BayCom Corp
Performance |
| Timeline |
| Walker Dunlop |
| BayCom Corp |
Walker Dunlop and BayCom Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and BayCom Corp
The main advantage of trading using opposite Walker Dunlop and BayCom Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, BayCom Corp 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 BayCom Corp will offset losses from the drop in BayCom Corp's long position.| Walker Dunlop vs. Encore Capital Group | Walker Dunlop vs. Greystone Housing Impact | Walker Dunlop vs. Kinsale Capital Group | Walker Dunlop vs. Live Oak Bancshares, |
| BayCom Corp vs. Affinity Bancshares | BayCom Corp vs. Northeast Community Bancorp | BayCom Corp vs. Bayfirst Financial Corp | BayCom Corp vs. Southern California Bancorp |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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