Correlation Between PagSeguro Digital and Walker Dunlop

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

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

Diversification Opportunities for PagSeguro Digital and Walker Dunlop

-0.16

Correlation Coefficient

PagSeguro Digital  Walker Dunlop

Good diversification

The 3 months correlation between PagSeguro and Walker is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding PagSeguro Digital and Walker Dunlop in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Walker Dunlop and PagSeguro Digital 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 PagSeguro Digital 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 PagSeguro Digital i.e., PagSeguro Digital and Walker Dunlop go up and down completely randomly.

Pair Corralation between PagSeguro Digital and Walker Dunlop

Given the investment horizon of 90 days PagSeguro Digital is expected to under-perform the Walker Dunlop. In addition to that, PagSeguro Digital is 1.55 times more volatile than Walker Dunlop. It trades about -0.07 of its total potential returns per unit of risk. Walker Dunlop is currently generating about 0.04 per unit of volatility. If you would invest  7,191  in Walker Dunlop on May 5, 2025 and sell it today you would earn a total of  255.00  from holding Walker Dunlop or generate 3.55% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

PagSeguro Digital  vs.  Walker Dunlop

PagSeguro Digital

Risk-Adjusted Performance

Very Weak

Over the last 90 days PagSeguro Digital has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's technical and fundamental indicators remain comparatively stable which may send shares a bit higher in September 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

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 PagSeguro Digital and Walker Dunlop

The main advantage of trading using opposite PagSeguro Digital and Walker Dunlop positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PagSeguro Digital 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 PagSeguro Digital 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.