Correlation Between Cumulus Media and Walker Dunlop

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

By analyzing existing cross correlation between Cumulus Media Class and Walker Dunlop, you can compare the effects of market volatilities on Cumulus Media 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 Cumulus Media with a short position of Walker Dunlop. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cumulus Media and Walker Dunlop.

Diversification Opportunities for Cumulus Media and Walker Dunlop

-0.27

Correlation Coefficient

Cumulus Media  Walker Dunlop

Very good diversification

The 3 months correlation between Cumulus and Walker is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Cumulus Media Class and Walker Dunlop in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Walker Dunlop and Cumulus Media 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 Cumulus Media Class 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 Cumulus Media i.e., Cumulus Media and Walker Dunlop go up and down completely randomly.

Pair Corralation between Cumulus Media and Walker Dunlop

If you would invest  7,074  in Walker Dunlop on May 7, 2025 and sell it today you would earn a total of  491.00  from holding Walker Dunlop or generate 6.94% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	1.64%
Values	Daily Returns

Cumulus Media Class  vs.  Walker Dunlop

Cumulus Media Class

Risk-Adjusted Performance

Very Weak

Over the last 90 days Cumulus Media Class has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable essential indicators, Cumulus Media is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Walker Dunlop

Risk-Adjusted Performance

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 fragile fundamental indicators, Walker Dunlop may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Cumulus Media and Walker Dunlop

The main advantage of trading using opposite Cumulus Media and Walker Dunlop positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cumulus Media 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.

The idea behind Cumulus Media Class and Walker Dunlop 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.

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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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..