Correlation Between Walker Dunlop and EVgo Equity

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

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

Diversification Opportunities for Walker Dunlop and EVgo Equity

-0.5

Correlation Coefficient

Walker Dunlop  EVgo Equity

Very good diversification

The 3 months correlation between Walker and EVgo is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and EVgo Equity Warrants in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EVgo Equity Warrants 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 EVgo Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EVgo Equity Warrants has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and EVgo Equity go up and down completely randomly.

Pair Corralation between Walker Dunlop and EVgo Equity

Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 0.46 times more return on investment than EVgo Equity. However, Walker Dunlop is 2.19 times less risky than EVgo Equity. It trades about 0.1 of its potential returns per unit of risk. EVgo Equity Warrants is currently generating about 0.02 per unit of risk. If you would invest  6,963  in Walker Dunlop on April 23, 2025 and sell it today you would earn a total of  243.00  from holding Walker Dunlop or generate 3.49% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	95.24%
Values	Daily Returns

Walker Dunlop  vs.  EVgo Equity Warrants

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.

EVgo Equity Warrants

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in EVgo Equity Warrants are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, EVgo Equity showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Walker Dunlop and EVgo Equity

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

The idea behind Walker Dunlop and EVgo Equity Warrants 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.