Correlation Between Walker Dunlop and ZW Data

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

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

Diversification Opportunities for Walker Dunlop and ZW Data

0.67

Correlation Coefficient

Walker Dunlop  ZW Data

Poor diversification

The 3 months correlation between Walker and CNET is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and ZW Data Action in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZW Data Action 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 ZW Data. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZW Data Action has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and ZW Data go up and down completely randomly.

Pair Corralation between Walker Dunlop and ZW Data

Allowing for the 90-day total investment horizon Walker Dunlop is expected to under-perform the ZW Data. But the stock apears to be less risky and, when comparing its historical volatility, Walker Dunlop is 2.68 times less risky than ZW Data. The stock trades about -0.08 of its potential returns per unit of risk. The ZW Data Action is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  194.00  in ZW Data Action on April 26, 2025 and sell it today you would lose (36.00) from holding ZW Data Action or give up 18.56% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	99.46%
Values	Daily Returns

Walker Dunlop  vs.  ZW Data Action

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 current stock price tumult, may contribute to shorter-term losses for the shareholders.

ZW Data Action

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in ZW Data Action are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain technical and fundamental indicators, ZW Data unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Walker Dunlop and ZW Data

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

The idea behind Walker Dunlop and ZW Data Action 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.