Correlation Between Walker Dunlop and Matrix Service

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

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

Diversification Opportunities for Walker Dunlop and Matrix Service

0.31

Correlation Coefficient

Walker Dunlop  Matrix Service

Weak diversification

The 3 months correlation between Walker and Matrix is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Matrix Service Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Matrix Service 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 Matrix Service. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Matrix Service has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Matrix Service go up and down completely randomly.

Pair Corralation between Walker Dunlop and Matrix Service

Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 15.88 times less return on investment than Matrix Service. But when comparing it to its historical volatility, Walker Dunlop is 1.23 times less risky than Matrix Service. It trades about 0.01 of its potential returns per unit of risk. Matrix Service Co is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest  1,160  in Matrix Service Co on April 30, 2025 and sell it today you would earn a total of  400.00  from holding Matrix Service Co or generate 34.48% 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.  Matrix Service Co

Walker Dunlop

Risk-Adjusted Performance

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Walker Dunlop are ranked lower than 1 (%) 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.

Matrix Service

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Matrix Service Co are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady basic indicators, Matrix Service showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Walker Dunlop and Matrix Service

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

The idea behind Walker Dunlop and Matrix Service Co 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.