Correlation Between Walker Dunlop and WFD Unibail

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

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

Diversification Opportunities for Walker Dunlop and WFD Unibail

-0.12

Correlation Coefficient

Walker Dunlop  WFD Unibail

Good diversification

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

Pair Corralation between Walker Dunlop and WFD Unibail

Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 3.86 times less return on investment than WFD Unibail. In addition to that, Walker Dunlop is 1.26 times more volatile than WFD Unibail Rodamco. It trades about 0.04 of its total potential returns per unit of risk. WFD Unibail Rodamco is currently generating about 0.18 per unit of volatility. If you would invest  8,276  in WFD Unibail Rodamco on May 4, 2025 and sell it today you would earn a total of  1,621  from holding WFD Unibail Rodamco or generate 19.59% 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.  WFD Unibail Rodamco

Walker Dunlop

Risk-Adjusted Performance

Insignificant

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.

WFD Unibail Rodamco

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in WFD Unibail Rodamco are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile essential indicators, WFD Unibail reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Walker Dunlop and WFD Unibail

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

The idea behind Walker Dunlop and WFD Unibail Rodamco 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.