Correlation Between Walker Dunlop and CASI Pharmaceuticals

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

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

Diversification Opportunities for Walker Dunlop and CASI Pharmaceuticals

-0.33

Correlation Coefficient

Walker Dunlop  CASI Pharmaceuticals

Very good diversification

The 3 months correlation between Walker and CASI is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and CASI Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CASI Pharmaceuticals 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 CASI Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CASI Pharmaceuticals has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and CASI Pharmaceuticals go up and down completely randomly.

Pair Corralation between Walker Dunlop and CASI Pharmaceuticals

Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 0.34 times more return on investment than CASI Pharmaceuticals. However, Walker Dunlop is 2.9 times less risky than CASI Pharmaceuticals. It trades about 0.04 of its potential returns per unit of risk. CASI Pharmaceuticals is currently generating about -0.07 per unit of risk. If you would invest  7,191  in Walker Dunlop on May 3, 2025 and sell it today you would earn a total of  310.00  from holding Walker Dunlop or generate 4.31% return on investment over 90 days.

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

Walker Dunlop  vs.  CASI Pharmaceuticals

Walker Dunlop

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Walker Dunlop are ranked lower than 3 (%) 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.

CASI Pharmaceuticals

Risk-Adjusted Performance

Very Weak

Over the last 90 days CASI Pharmaceuticals has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in September 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Walker Dunlop and CASI Pharmaceuticals

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

The idea behind Walker Dunlop and CASI Pharmaceuticals 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.