Correlation Between Walker Dunlop and VCI Global

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

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

Diversification Opportunities for Walker Dunlop and VCI Global

0.04

Correlation Coefficient

Walker Dunlop  VCI Global

Significant diversification

The 3 months correlation between Walker and VCI is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and VCI Global Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VCI Global Limited 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 VCI Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VCI Global Limited has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and VCI Global go up and down completely randomly.

Pair Corralation between Walker Dunlop and VCI Global

Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 0.24 times more return on investment than VCI Global. However, Walker Dunlop is 4.15 times less risky than VCI Global. It trades about 0.02 of its potential returns per unit of risk. VCI Global Limited is currently generating about -0.19 per unit of risk. If you would invest  7,463  in Walker Dunlop on April 23, 2025 and sell it today you would earn a total of  98.00  from holding Walker Dunlop or generate 1.31% return on investment over 90 days.

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

Walker Dunlop  vs.  VCI Global Limited

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 latest stock price tumult, may contribute to shorter-term losses for the shareholders.

VCI Global Limited

Risk-Adjusted Performance

Very Weak

Over the last 90 days VCI Global Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's forward indicators remain nearly stable which may send shares a bit higher in August 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Walker Dunlop and VCI Global

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

The idea behind Walker Dunlop and VCI Global Limited 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.