Correlation Between Walker Dunlop and ISh IBds

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

By analyzing existing cross correlation between Walker Dunlop and iSh iBds Dec27, you can compare the effects of market volatilities on Walker Dunlop and ISh IBds 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 ISh IBds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and ISh IBds.

Diversification Opportunities for Walker Dunlop and ISh IBds

0.67

Correlation Coefficient

Walker Dunlop  ISh IBds

Poor diversification

The 3 months correlation between Walker and ISh is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and iSh iBds Dec27 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iSh iBds Dec27 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 ISh IBds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iSh iBds Dec27 has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and ISh IBds go up and down completely randomly.

Pair Corralation between Walker Dunlop and ISh IBds

Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 26.76 times more return on investment than ISh IBds. However, Walker Dunlop is 26.76 times more volatile than iSh iBds Dec27. It trades about 0.2 of its potential returns per unit of risk. iSh iBds Dec27 is currently generating about 0.28 per unit of risk. If you would invest  6,745  in Walker Dunlop on May 28, 2025 and sell it today you would earn a total of  1,916  from holding Walker Dunlop or generate 28.41% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.39%
Values	Daily Returns

Walker Dunlop  vs.  iSh iBds Dec27

Walker Dunlop

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Walker Dunlop are ranked lower than 15 (%) 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.

iSh iBds Dec27

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in iSh iBds Dec27 are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, ISh IBds is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Walker Dunlop and ISh IBds

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

The idea behind Walker Dunlop and iSh iBds Dec27 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.