Correlation Between Walker Dunlop and WisdomTree International

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

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

Diversification Opportunities for Walker Dunlop and WisdomTree International

0.91

Correlation Coefficient

Walker Dunlop  WisdomTree International

Almost no diversification

The 3 months correlation between Walker and WisdomTree is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and WisdomTree International Equit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree International 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 WisdomTree International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree International has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and WisdomTree International go up and down completely randomly.

Pair Corralation between Walker Dunlop and WisdomTree International

Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 3.08 times more return on investment than WisdomTree International. However, Walker Dunlop is 3.08 times more volatile than WisdomTree International Equity. It trades about 0.12 of its potential returns per unit of risk. WisdomTree International Equity is currently generating about 0.18 per unit of risk. If you would invest  7,268  in Walker Dunlop on May 17, 2025 and sell it today you would earn a total of  1,163  from holding Walker Dunlop or generate 16.0% return on investment over 90 days.

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

Walker Dunlop  vs.  WisdomTree International Equit

Walker Dunlop

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Walker Dunlop are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile fundamental indicators, Walker Dunlop exhibited solid returns over the last few months and may actually be approaching a breakup point.

WisdomTree International

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in WisdomTree International Equity are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of very inconsistent basic indicators, WisdomTree International may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Walker Dunlop and WisdomTree International

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

The idea behind Walker Dunlop and WisdomTree International Equity 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.

Check out your portfolio center.

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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.