Correlation Between Walker Dunlop and Phathom Pharmaceuticals

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

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

Diversification Opportunities for Walker Dunlop and Phathom Pharmaceuticals

0.03

Correlation Coefficient

Walker Dunlop  Phathom Pharmaceuticals

Significant diversification

The 3 months correlation between Walker and Phathom is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Phathom Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phathom Pharmaceuticals 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 Phathom Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phathom Pharmaceuticals has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Phathom Pharmaceuticals go up and down completely randomly.

Pair Corralation between Walker Dunlop and Phathom Pharmaceuticals

Allowing for the 90-day total investment horizon Walker Dunlop is expected to under-perform the Phathom Pharmaceuticals. But the stock apears to be less risky and, when comparing its historical volatility, Walker Dunlop is 3.94 times less risky than Phathom Pharmaceuticals. The stock trades about -0.02 of its potential returns per unit of risk. The Phathom Pharmaceuticals is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  968.00  in Phathom Pharmaceuticals on May 2, 2025 and sell it today you would lose (97.00) from holding Phathom Pharmaceuticals or give up 10.02% of portfolio value over 90 days.

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

Walker Dunlop  vs.  Phathom Pharmaceuticals

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.

Phathom Pharmaceuticals

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Phathom Pharmaceuticals are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Phathom Pharmaceuticals unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Walker Dunlop and Phathom Pharmaceuticals

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

The idea behind Walker Dunlop and Phathom Pharmaceuticals 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.