Correlation Between Walker Dunlop and First Savings

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

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

Diversification Opportunities for Walker Dunlop and First Savings

0.17

Correlation Coefficient

Walker Dunlop  First Savings

Average diversification

The 3 months correlation between Walker and First is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and First Savings Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Savings Financial 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 First Savings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Savings Financial has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and First Savings go up and down completely randomly.

Pair Corralation between Walker Dunlop and First Savings

Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 1.63 times more return on investment than First Savings. However, Walker Dunlop is 1.63 times more volatile than First Savings Financial. It trades about 0.06 of its potential returns per unit of risk. First Savings Financial is currently generating about -0.05 per unit of risk. If you would invest  7,093  in Walker Dunlop on May 8, 2025 and sell it today you would earn a total of  521.00  from holding Walker Dunlop or generate 7.35% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Walker Dunlop  vs.  First Savings Financial

Walker Dunlop

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Walker Dunlop are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile fundamental indicators, Walker Dunlop may actually be approaching a critical reversion point that can send shares even higher in September 2025.

First Savings Financial

Risk-Adjusted Performance

Weakest

Over the last 90 days First Savings Financial has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, First Savings is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Walker Dunlop and First Savings

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

The idea behind Walker Dunlop and First Savings Financial 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.