Correlation Between Walker Dunlop and Bangchak Public

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

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

Diversification Opportunities for Walker Dunlop and Bangchak Public

-0.1

Correlation Coefficient

Walker Dunlop  Bangchak Public

Good diversification

The 3 months correlation between Walker and Bangchak is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Bangchak Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangchak Public 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 Bangchak Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bangchak Public has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Bangchak Public go up and down completely randomly.

Pair Corralation between Walker Dunlop and Bangchak Public

Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 0.7 times more return on investment than Bangchak Public. However, Walker Dunlop is 1.42 times less risky than Bangchak Public. It trades about 0.06 of its potential returns per unit of risk. Bangchak Public is currently generating about -0.1 per unit of risk. If you would invest  10,435  in Walker Dunlop on September 3, 2024 and sell it today you would earn a total of  583.00  from holding Walker Dunlop or generate 5.59% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Walker Dunlop  vs.  Bangchak Public

Walker Dunlop

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Walker Dunlop are ranked lower than 4 (%) 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.

Bangchak Public

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Bangchak Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in January 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Walker Dunlop and Bangchak Public

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

The idea behind Walker Dunlop and Bangchak Public 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.