Correlation Between Walker Dunlop and TLOS

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

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

Diversification Opportunities for Walker Dunlop and TLOS

0.28

Correlation Coefficient

Walker Dunlop  TLOS

Modest diversification

The 3 months correlation between Walker and TLOS is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and TLOS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TLOS 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 TLOS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TLOS has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and TLOS go up and down completely randomly.

Pair Corralation between Walker Dunlop and TLOS

Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 0.35 times more return on investment than TLOS. However, Walker Dunlop is 2.9 times less risky than TLOS. It trades about -0.01 of its potential returns per unit of risk. TLOS is currently generating about -0.21 per unit of risk. If you would invest  7,374  in Walker Dunlop on April 22, 2025 and sell it today you would lose (168.00) from holding Walker Dunlop or give up 2.28% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	95.38%
Values	Daily Returns

Walker Dunlop  vs.  TLOS

Walker Dunlop

Risk-Adjusted Performance

Very Weak

Over the last 90 days Walker Dunlop has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, Walker Dunlop is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

TLOS

Risk-Adjusted Performance

Very Weak

Over the last 90 days TLOS has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Crypto's fundamental indicators remain rather sound which may send shares a bit higher in August 2025. The latest tumult may also be a sign of longer-term up-swing for TLOS shareholders.

Pair Trading with Walker Dunlop and TLOS

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

The idea behind Walker Dunlop and TLOS 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.