Correlation Between Walker Dunlop and Origin Materials

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

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

Diversification Opportunities for Walker Dunlop and Origin Materials

0.57

Correlation Coefficient

Walker Dunlop  Origin Materials

Very weak diversification

The 3 months correlation between Walker and Origin is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Origin Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Origin Materials 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 Origin Materials. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Origin Materials has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Origin Materials go up and down completely randomly.

Pair Corralation between Walker Dunlop and Origin Materials

Allowing for the 90-day total investment horizon Walker Dunlop is expected to under-perform the Origin Materials. But the stock apears to be less risky and, when comparing its historical volatility, Walker Dunlop is 2.41 times less risky than Origin Materials. The stock trades about -0.19 of its potential returns per unit of risk. The Origin Materials is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest  53.00  in Origin Materials on September 7, 2025 and sell it today you would lose (8.00) from holding Origin Materials or give up 15.09% of portfolio value over 90 days.

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

Walker Dunlop  vs.  Origin Materials

Walker Dunlop

Risk-Adjusted Performance

Weakest

Over the last 90 days Walker Dunlop has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's fundamental indicators remain rather sound which may send shares a bit higher in January 2026. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Origin Materials

Risk-Adjusted Performance

Weakest

Over the last 90 days Origin Materials has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile performance, the Stock's technical and fundamental indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Pair Trading with Walker Dunlop and Origin Materials

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

The idea behind Walker Dunlop and Origin Materials 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.