Correlation Between Walker Dunlop and Advent Technologies

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

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

Diversification Opportunities for Walker Dunlop and Advent Technologies

-0.16

Correlation Coefficient

Walker Dunlop  Advent Technologies

Good diversification

The 3 months correlation between Walker and Advent is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Advent Technologies Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advent Technologies 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 Advent Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advent Technologies has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Advent Technologies go up and down completely randomly.

Pair Corralation between Walker Dunlop and Advent Technologies

Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 0.29 times more return on investment than Advent Technologies. However, Walker Dunlop is 3.49 times less risky than Advent Technologies. It trades about 0.04 of its potential returns per unit of risk. Advent Technologies Holdings is currently generating about -0.08 per unit of risk. If you would invest  7,191  in Walker Dunlop on May 4, 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

Walker Dunlop  vs.  Advent Technologies Holdings

Walker Dunlop

Risk-Adjusted Performance

Insignificant

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.

Advent Technologies

Risk-Adjusted Performance

Very Weak

Over the last 90 days Advent Technologies Holdings 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 basic indicators remain fairly stable which may send shares a bit higher in September 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with Walker Dunlop and Advent Technologies

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

The idea behind Walker Dunlop and Advent Technologies Holdings 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.