Correlation Between Walker Dunlop and Pnc International

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

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

Diversification Opportunities for Walker Dunlop and Pnc International

-0.12

Correlation Coefficient

Walker Dunlop  Pnc International

Good diversification

The 3 months correlation between Walker and Pnc is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Pnc International Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pnc International Equity 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 Pnc International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pnc International Equity has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Pnc International go up and down completely randomly.

Pair Corralation between Walker Dunlop and Pnc International

Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 4.88 times less return on investment than Pnc International. In addition to that, Walker Dunlop is 3.51 times more volatile than Pnc International Equity. It trades about 0.01 of its total potential returns per unit of risk. Pnc International Equity is currently generating about 0.26 per unit of volatility. If you would invest  2,313  in Pnc International Equity on April 30, 2025 and sell it today you would earn a total of  235.00  from holding Pnc International Equity or generate 10.16% return on investment over 90 days.

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

Walker Dunlop  vs.  Pnc International Equity

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.

Pnc International Equity

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Pnc International Equity are ranked lower than 20 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Pnc International may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Walker Dunlop and Pnc International

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

The idea behind Walker Dunlop and Pnc International Equity 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.