Correlation Between Walker Dunlop and Exsitec Holding

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

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

Diversification Opportunities for Walker Dunlop and Exsitec Holding

0.43

Correlation Coefficient

Walker Dunlop  Exsitec Holding

Very weak diversification

The 3 months correlation between Walker and Exsitec is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Exsitec Holding AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exsitec Holding AB 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 Exsitec Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exsitec Holding AB has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Exsitec Holding go up and down completely randomly.

Pair Corralation between Walker Dunlop and Exsitec Holding

Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 2.26 times less return on investment than Exsitec Holding. In addition to that, Walker Dunlop is 1.57 times more volatile than Exsitec Holding AB. It trades about 0.03 of its total potential returns per unit of risk. Exsitec Holding AB is currently generating about 0.12 per unit of volatility. If you would invest  12,150  in Exsitec Holding AB on May 1, 2025 and sell it today you would earn a total of  1,150  from holding Exsitec Holding AB or generate 9.47% return on investment over 90 days.

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

Walker Dunlop  vs.  Exsitec Holding AB

Walker Dunlop

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Walker Dunlop are ranked lower than 2 (%) 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.

Exsitec Holding AB

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Exsitec Holding AB are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Exsitec Holding may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Walker Dunlop and Exsitec Holding

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

The idea behind Walker Dunlop and Exsitec Holding AB 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.