Correlation Between Walker Dunlop and Fidelity Growth

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

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

Diversification Opportunities for Walker Dunlop and Fidelity Growth

0.24

Correlation Coefficient

Walker Dunlop  Fidelity Growth

Modest diversification

The 3 months correlation between Walker and Fidelity is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Fidelity Growth Strategies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Growth Stra 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 Fidelity Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Growth Stra has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Fidelity Growth go up and down completely randomly.

Pair Corralation between Walker Dunlop and Fidelity Growth

Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 2.5 times less return on investment than Fidelity Growth. In addition to that, Walker Dunlop is 1.99 times more volatile than Fidelity Growth Strategies. It trades about 0.04 of its total potential returns per unit of risk. Fidelity Growth Strategies is currently generating about 0.18 per unit of volatility. If you would invest  6,652  in Fidelity Growth Strategies on May 4, 2025 and sell it today you would earn a total of  833.00  from holding Fidelity Growth Strategies or generate 12.52% 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.  Fidelity Growth Strategies

Walker Dunlop

Risk-Adjusted Performance

Weak

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.

Fidelity Growth Stra

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Fidelity Growth Strategies are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Fidelity Growth may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Walker Dunlop and Fidelity Growth

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

The idea behind Walker Dunlop and Fidelity Growth Strategies 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.