Correlation Between Sprout Social and Walker Dunlop

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

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

Diversification Opportunities for Sprout Social and Walker Dunlop

-0.8

Correlation Coefficient

Sprout Social  Walker Dunlop

Pay attention - limited upside

The 3 months correlation between Sprout and Walker is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Sprout Social and Walker Dunlop in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Walker Dunlop and Sprout Social 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 Sprout Social 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 Sprout Social i.e., Sprout Social and Walker Dunlop go up and down completely randomly.

Pair Corralation between Sprout Social and Walker Dunlop

Considering the 90-day investment horizon Sprout Social is expected to under-perform the Walker Dunlop. In addition to that, Sprout Social is 1.3 times more volatile than Walker Dunlop. It trades about -0.22 of its total potential returns per unit of risk. Walker Dunlop is currently generating about 0.21 per unit of volatility. If you would invest  6,680  in Walker Dunlop on May 22, 2025 and sell it today you would earn a total of  1,898  from holding Walker Dunlop or generate 28.41% return on investment over 90 days.

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

Sprout Social  vs.  Walker Dunlop

Sprout Social

Risk-Adjusted Performance

Weakest

Over the last 90 days Sprout Social has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic 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

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Walker Dunlop are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile fundamental indicators, Walker Dunlop exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Sprout Social and Walker Dunlop

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

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 CEOs Directory module to screen CEOs from public companies around the world.