Correlation Between Walker Dunlop and Bitfarms

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

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

Diversification Opportunities for Walker Dunlop and Bitfarms

0.34

Correlation Coefficient

Walker Dunlop  Bitfarms

Weak diversification

The 3 months correlation between Walker and Bitfarms is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Bitfarms in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitfarms 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 Bitfarms. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitfarms has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Bitfarms go up and down completely randomly.

Pair Corralation between Walker Dunlop and Bitfarms

Allowing for the 90-day total investment horizon Walker Dunlop is expected to under-perform the Bitfarms. But the stock apears to be less risky and, when comparing its historical volatility, Walker Dunlop is 3.72 times less risky than Bitfarms. The stock trades about -0.19 of its potential returns per unit of risk. The Bitfarms is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  223.00  in Bitfarms on September 12, 2025 and sell it today you would earn a total of  71.00  from holding Bitfarms or generate 31.84% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Walker Dunlop  vs.  Bitfarms

Walker Dunlop

Risk-Adjusted Performance

Weakest

Over the last 90 days Walker Dunlop has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's fundamental indicators remain rather sound which may send shares a bit higher in January 2026. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Bitfarms

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Bitfarms are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Bitfarms reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Walker Dunlop and Bitfarms

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

The idea behind Walker Dunlop and Bitfarms 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.