Correlation Between Walker Dunlop and Doubleline Low

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

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

Diversification Opportunities for Walker Dunlop and Doubleline Low

0.3

Correlation Coefficient

Walker Dunlop  Doubleline Low

Weak diversification

The 3 months correlation between Walker and Doubleline is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Doubleline Low Duration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Doubleline Low Duration 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 Doubleline Low. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Doubleline Low Duration has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Doubleline Low go up and down completely randomly.

Pair Corralation between Walker Dunlop and Doubleline Low

Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 22.94 times more return on investment than Doubleline Low. However, Walker Dunlop is 22.94 times more volatile than Doubleline Low Duration. It trades about 0.04 of its potential returns per unit of risk. Doubleline Low Duration is currently generating about 0.18 per unit of risk. If you would invest  7,191  in Walker Dunlop on May 3, 2025 and sell it today you would earn a total of  310.00  from holding Walker Dunlop or generate 4.31% return on investment over 90 days.

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

Walker Dunlop  vs.  Doubleline Low Duration

Walker Dunlop

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Walker Dunlop are ranked lower than 3 (%) 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.

Doubleline Low Duration

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Doubleline Low Duration are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Doubleline Low 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 Doubleline Low

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

The idea behind Walker Dunlop and Doubleline Low Duration 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.