Correlation Between Walker Dunlop and Mosaic

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

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

Diversification Opportunities for Walker Dunlop and Mosaic

-0.63

Correlation Coefficient

Walker Dunlop  Mosaic

Excellent diversification

The 3 months correlation between Walker and Mosaic is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and The Mosaic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mosaic 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 Mosaic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mosaic has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Mosaic go up and down completely randomly.

Pair Corralation between Walker Dunlop and Mosaic

Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 0.87 times more return on investment than Mosaic. However, Walker Dunlop is 1.15 times less risky than Mosaic. It trades about 0.09 of its potential returns per unit of risk. The Mosaic is currently generating about -0.03 per unit of risk. If you would invest  7,476  in Walker Dunlop on July 3, 2025 and sell it today you would earn a total of  835.00  from holding Walker Dunlop or generate 11.17% return on investment over 90 days.

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

Walker Dunlop  vs.  The Mosaic

Walker Dunlop

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Walker Dunlop are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather abnormal fundamental indicators, Walker Dunlop may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Mosaic

Risk-Adjusted Performance

Weakest

Over the last 90 days The Mosaic has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Mosaic is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Walker Dunlop and Mosaic

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

The idea behind Walker Dunlop and The Mosaic 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.