Correlation Between Walker Dunlop and Federated

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

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

Diversification Opportunities for Walker Dunlop and Federated

0.39

Correlation Coefficient

Walker Dunlop  Federated

Weak diversification

The 3 months correlation between Walker and Federated is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Federated U S in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated U S 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 Federated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated U S has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Federated go up and down completely randomly.

Pair Corralation between Walker Dunlop and Federated

Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 11.26 times more return on investment than Federated. However, Walker Dunlop is 11.26 times more volatile than Federated U S. It trades about 0.03 of its potential returns per unit of risk. Federated U S is currently generating about 0.03 per unit of risk. If you would invest  7,351  in Walker Dunlop on May 2, 2025 and sell it today you would earn a total of  150.00  from holding Walker Dunlop or generate 2.04% 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.  Federated U S

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.

Federated U S

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Federated U S are ranked lower than 2 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward-looking signals, Federated is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Walker Dunlop and Federated

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

The idea behind Walker Dunlop and Federated U S 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.