Correlation Between Walker Dunlop and Magnora ASA
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Magnora ASA 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 Magnora ASA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Magnora ASA, you can compare the effects of market volatilities on Walker Dunlop and Magnora ASA 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 Magnora ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Magnora ASA.
Diversification Opportunities for Walker Dunlop and Magnora ASA
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Walker and Magnora is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Magnora ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Magnora ASA 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 Magnora ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Magnora ASA has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Magnora ASA go up and down completely randomly.
Pair Corralation between Walker Dunlop and Magnora ASA
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 1.89 times more return on investment than Magnora ASA. However, Walker Dunlop is 1.89 times more volatile than Magnora ASA. It trades about 0.19 of its potential returns per unit of risk. Magnora ASA is currently generating about -0.14 per unit of risk. If you would invest 6,726 in Walker Dunlop on June 4, 2025 and sell it today you would earn a total of 1,779 from holding Walker Dunlop or generate 26.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walker Dunlop vs. Magnora ASA
Performance |
| Timeline |
| Walker Dunlop |
| Magnora ASA |
Walker Dunlop and Magnora ASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Magnora ASA
The main advantage of trading using opposite Walker Dunlop and Magnora ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Magnora ASA 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 Magnora ASA will offset losses from the drop in Magnora ASA'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, |
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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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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