Correlation Between Walker Dunlop and Natixis Oakmark

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

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

Diversification Opportunities for Walker Dunlop and Natixis Oakmark

0.5

Correlation Coefficient

Walker Dunlop  Natixis Oakmark

Very weak diversification

The 3 months correlation between Walker and Natixis is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Natixis Oakmark Intl in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Natixis Oakmark Intl 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 Natixis Oakmark. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Natixis Oakmark Intl has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Natixis Oakmark go up and down completely randomly.

Pair Corralation between Walker Dunlop and Natixis Oakmark

Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 1.07 times less return on investment than Natixis Oakmark. In addition to that, Walker Dunlop is 2.24 times more volatile than Natixis Oakmark Intl. It trades about 0.04 of its total potential returns per unit of risk. Natixis Oakmark Intl is currently generating about 0.09 per unit of volatility. If you would invest  1,523  in Natixis Oakmark Intl on May 4, 2025 and sell it today you would earn a total of  77.00  from holding Natixis Oakmark Intl or generate 5.06% return on investment over 90 days.

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

Walker Dunlop  vs.  Natixis Oakmark Intl

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.

Natixis Oakmark Intl

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Natixis Oakmark Intl are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Natixis Oakmark 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 Natixis Oakmark

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

The idea behind Walker Dunlop and Natixis Oakmark Intl 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..