Correlation Between Walker Dunlop and Teucrium Corn

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

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

Diversification Opportunities for Walker Dunlop and Teucrium Corn

-0.72

Correlation Coefficient

Walker Dunlop  Teucrium Corn

Pay attention - limited upside

The 3 months correlation between Walker and Teucrium is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Teucrium Corn in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teucrium Corn 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 Teucrium Corn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Teucrium Corn has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Teucrium Corn go up and down completely randomly.

Pair Corralation between Walker Dunlop and Teucrium Corn

Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 2.16 times more return on investment than Teucrium Corn. However, Walker Dunlop is 2.16 times more volatile than Teucrium Corn. It trades about 0.0 of its potential returns per unit of risk. Teucrium Corn is currently generating about -0.05 per unit of risk. If you would invest  8,354  in Walker Dunlop on May 4, 2025 and sell it today you would lose (908.00) from holding Walker Dunlop or give up 10.87% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	99.8%
Values	Daily Returns

Walker Dunlop  vs.  Teucrium Corn

Walker Dunlop

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Walker Dunlop are ranked lower than 2 (%) 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.

Teucrium Corn

Risk-Adjusted Performance

Very Weak

Over the last 90 days Teucrium Corn has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Etf's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the ETF investors.

Pair Trading with Walker Dunlop and Teucrium Corn

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

The idea behind Walker Dunlop and Teucrium Corn 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 Global Correlations module to find global opportunities by holding instruments from different markets.