Correlation Between Walker Dunlop and Sunworks

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

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

Diversification Opportunities for Walker Dunlop and Sunworks

0.0

Correlation Coefficient

Walker Dunlop  Sunworks

Pay attention - limited upside

The 3 months correlation between Walker and Sunworks is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Sunworks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunworks 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 Sunworks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunworks has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Sunworks go up and down completely randomly.

Pair Corralation between Walker Dunlop and Sunworks

If you would invest  0.01  in Sunworks on September 7, 2025 and sell it today you would earn a total of  0.00  from holding Sunworks or generate 0.0% return on investment over 90 days.

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

Walker Dunlop  vs.  Sunworks

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.

Sunworks

Risk-Adjusted Performance

Weakest

Over the last 90 days Sunworks has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Sunworks is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Walker Dunlop and Sunworks

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

The idea behind Walker Dunlop and Sunworks 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.