Correlation Between Walker Dunlop and Evaluator Moderate

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

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

Diversification Opportunities for Walker Dunlop and Evaluator Moderate

-0.15

Correlation Coefficient

Walker Dunlop  Evaluator Moderate

Good diversification

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

Pair Corralation between Walker Dunlop and Evaluator Moderate

Allowing for the 90-day total investment horizon Walker Dunlop is expected to under-perform the Evaluator Moderate. In addition to that, Walker Dunlop is 4.3 times more volatile than Evaluator Moderate Rms. It trades about -0.01 of its total potential returns per unit of risk. Evaluator Moderate Rms is currently generating about 0.38 per unit of volatility. If you would invest  1,023  in Evaluator Moderate Rms on April 22, 2025 and sell it today you would earn a total of  126.00  from holding Evaluator Moderate Rms or generate 12.32% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

Walker Dunlop  vs.  Evaluator Moderate Rms

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

Evaluator Moderate Rms

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Evaluator Moderate Rms are ranked lower than 29 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak primary indicators, Evaluator Moderate may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Walker Dunlop and Evaluator Moderate

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

The idea behind Walker Dunlop and Evaluator Moderate Rms 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.