Correlation Between IHeartMedia and Walker Dunlop

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

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

Diversification Opportunities for IHeartMedia and Walker Dunlop

0.32

Correlation Coefficient

IHeartMedia  Walker Dunlop

Weak diversification

The 3 months correlation between IHeartMedia and Walker is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding iHeartMedia Class A and Walker Dunlop in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Walker Dunlop and IHeartMedia 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 iHeartMedia Class A 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 IHeartMedia i.e., IHeartMedia and Walker Dunlop go up and down completely randomly.

Pair Corralation between IHeartMedia and Walker Dunlop

Given the investment horizon of 90 days iHeartMedia Class A is expected to generate 2.0 times more return on investment than Walker Dunlop. However, IHeartMedia is 2.0 times more volatile than Walker Dunlop. It trades about 0.23 of its potential returns per unit of risk. Walker Dunlop is currently generating about 0.04 per unit of risk. If you would invest  105.00  in iHeartMedia Class A on May 5, 2025 and sell it today you would earn a total of  76.00  from holding iHeartMedia Class A or generate 72.38% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

iHeartMedia Class A  vs.  Walker Dunlop

iHeartMedia Class

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in iHeartMedia Class A are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating basic indicators, IHeartMedia unveiled solid returns over the last few months and may actually be approaching a breakup point.

Walker Dunlop

Risk-Adjusted Performance

Weak

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 current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with IHeartMedia and Walker Dunlop

The main advantage of trading using opposite IHeartMedia and Walker Dunlop positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IHeartMedia 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 iHeartMedia Class A 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..