Correlation Between Walker Dunlop and Catalystcifc Floating

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

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

Diversification Opportunities for Walker Dunlop and Catalystcifc Floating

0.45

Correlation Coefficient

Walker Dunlop  Catalystcifc Floating

Very weak diversification

The 3 months correlation between Walker and Catalystcifc is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Catalystcifc Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalystcifc Floating 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 Catalystcifc Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalystcifc Floating has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Catalystcifc Floating go up and down completely randomly.

Pair Corralation between Walker Dunlop and Catalystcifc Floating

Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 1.15 times less return on investment than Catalystcifc Floating. In addition to that, Walker Dunlop is 18.49 times more volatile than Catalystcifc Floating Rate. It trades about 0.01 of its total potential returns per unit of risk. Catalystcifc Floating Rate is currently generating about 0.32 per unit of volatility. If you would invest  899.00  in Catalystcifc Floating Rate on April 30, 2025 and sell it today you would earn a total of  21.00  from holding Catalystcifc Floating Rate or generate 2.34% return on investment over 90 days.

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

Walker Dunlop  vs.  Catalystcifc Floating Rate

Walker Dunlop

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Walker Dunlop are ranked lower than 1 (%) 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.

Catalystcifc Floating

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Catalystcifc Floating Rate are ranked lower than 25 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Catalystcifc Floating 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 Catalystcifc Floating

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

The idea behind Walker Dunlop and Catalystcifc Floating Rate 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.