Correlation Between Walker Dunlop and Shuang Bang

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

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

Diversification Opportunities for Walker Dunlop and Shuang Bang

0.69

Correlation Coefficient

Walker Dunlop  Shuang Bang

Poor diversification

The 3 months correlation between Walker and Shuang is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Shuang Bang Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shuang Bang Industrial 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 Shuang Bang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shuang Bang Industrial has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Shuang Bang go up and down completely randomly.

Pair Corralation between Walker Dunlop and Shuang Bang

Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 0.64 times more return on investment than Shuang Bang. However, Walker Dunlop is 1.55 times less risky than Shuang Bang. It trades about -0.13 of its potential returns per unit of risk. Shuang Bang Industrial is currently generating about -0.15 per unit of risk. If you would invest  11,050  in Walker Dunlop on September 12, 2024 and sell it today you would lose (408.00) from holding Walker Dunlop or give up 3.69% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	95.45%
Values	Daily Returns

Walker Dunlop  vs.  Shuang Bang Industrial

Walker Dunlop

Risk-Adjusted Performance

2 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Walker Dunlop are ranked lower than 2 (%) 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.

Shuang Bang Industrial

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Shuang Bang Industrial are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, Shuang Bang is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Walker Dunlop and Shuang Bang

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

The idea behind Walker Dunlop and Shuang Bang Industrial 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.

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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.