Correlation Between Walker Dunlop and Argo Blockchain

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

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

Diversification Opportunities for Walker Dunlop and Argo Blockchain

-0.03

Correlation Coefficient

Walker Dunlop  Argo Blockchain

Good diversification

The 3 months correlation between Walker and Argo is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Argo Blockchain PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Argo Blockchain PLC 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 Argo Blockchain. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Argo Blockchain PLC has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Argo Blockchain go up and down completely randomly.

Pair Corralation between Walker Dunlop and Argo Blockchain

Allowing for the 90-day total investment horizon Walker Dunlop is expected to under-perform the Argo Blockchain. But the stock apears to be less risky and, when comparing its historical volatility, Walker Dunlop is 7.48 times less risky than Argo Blockchain. The stock trades about -0.01 of its potential returns per unit of risk. The Argo Blockchain PLC is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  35.00  in Argo Blockchain PLC on April 22, 2025 and sell it today you would earn a total of  15.00  from holding Argo Blockchain PLC or generate 42.86% 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.  Argo Blockchain PLC

Walker Dunlop

Risk-Adjusted Performance

Weak

Over the last 90 days Walker Dunlop has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, Walker Dunlop is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Argo Blockchain PLC

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Argo Blockchain PLC are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite quite weak fundamental drivers, Argo Blockchain disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Walker Dunlop and Argo Blockchain

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

The idea behind Walker Dunlop and Argo Blockchain PLC 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.