Correlation Between Walker Dunlop and Income Fund

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

By analyzing existing cross correlation between Walker Dunlop and Income Fund R 6, you can compare the effects of market volatilities on Walker Dunlop and Income Fund 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 Income Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Income Fund.

Diversification Opportunities for Walker Dunlop and Income Fund

0.81

Correlation Coefficient

Walker Dunlop  Income Fund

Very poor diversification

The 3 months correlation between Walker and Income is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Income Fund R 6 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Income Fund R 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 Income Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Income Fund R has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Income Fund go up and down completely randomly.

Pair Corralation between Walker Dunlop and Income Fund

Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 8.63 times more return on investment than Income Fund. However, Walker Dunlop is 8.63 times more volatile than Income Fund R 6. It trades about 0.12 of its potential returns per unit of risk. Income Fund R 6 is currently generating about 0.11 per unit of risk. If you would invest  7,175  in Walker Dunlop on July 1, 2025 and sell it today you would earn a total of  1,161  from holding Walker Dunlop or generate 16.18% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	98.44%
Values	Daily Returns

Walker Dunlop  vs.  Income Fund R 6

Walker Dunlop

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Walker Dunlop are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile fundamental indicators, Walker Dunlop exhibited solid returns over the last few months and may actually be approaching a breakup point.

Income Fund R

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Income Fund R 6 are ranked lower than 8 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Income Fund 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 Income Fund

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

The idea behind Walker Dunlop and Income Fund R 6 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.