Correlation Between Walker Dunlop and Calvert Floating-rate

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

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

Diversification Opportunities for Walker Dunlop and Calvert Floating-rate

-0.11

Correlation Coefficient

Walker Dunlop  Calvert Floating-rate

Good diversification

The 3 months correlation between Walker and Calvert is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Calvert Floating Rate Advantag in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Floating Rate 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 Calvert Floating-rate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Floating Rate has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Calvert Floating-rate go up and down completely randomly.

Pair Corralation between Walker Dunlop and Calvert Floating-rate

Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 3.25 times less return on investment than Calvert Floating-rate. In addition to that, Walker Dunlop is 14.72 times more volatile than Calvert Floating Rate Advantage. It trades about 0.01 of its total potential returns per unit of risk. Calvert Floating Rate Advantage is currently generating about 0.34 per unit of volatility. If you would invest  852.00  in Calvert Floating Rate Advantage on April 24, 2025 and sell it today you would earn a total of  27.00  from holding Calvert Floating Rate Advantage or generate 3.17% 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.  Calvert Floating Rate Advantag

Walker Dunlop

Risk-Adjusted Performance

Very 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.

Calvert Floating Rate

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Calvert Floating Rate Advantage are ranked lower than 26 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Calvert Floating-rate is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Walker Dunlop and Calvert Floating-rate

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

The idea behind Walker Dunlop and Calvert Floating Rate Advantage 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.