Correlation Between Walker Dunlop and Citadel Income

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

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

Diversification Opportunities for Walker Dunlop and Citadel Income

0.15

Correlation Coefficient

Walker Dunlop  Citadel Income

Average diversification

The 3 months correlation between Walker and Citadel is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Citadel Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citadel Income 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 Citadel Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citadel Income has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Citadel Income go up and down completely randomly.

Pair Corralation between Walker Dunlop and Citadel Income

Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 5.18 times less return on investment than Citadel Income. In addition to that, Walker Dunlop is 1.11 times more volatile than Citadel Income. It trades about 0.02 of its total potential returns per unit of risk. Citadel Income is currently generating about 0.12 per unit of volatility. If you would invest  245.00  in Citadel Income on April 23, 2025 and sell it today you would earn a total of  34.00  from holding Citadel Income or generate 13.88% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	96.77%
Values	Daily Returns

Walker Dunlop  vs.  Citadel Income

Walker Dunlop

Risk-Adjusted Performance

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

Citadel Income

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Citadel Income are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. Despite somewhat weak technical and fundamental indicators, Citadel Income sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Walker Dunlop and Citadel Income

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

The idea behind Walker Dunlop and Citadel Income 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.