Correlation Between Walker Dunlop and Verisk Analytics

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

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

Diversification Opportunities for Walker Dunlop and Verisk Analytics

-0.68

Correlation Coefficient

Walker Dunlop  Verisk Analytics

Excellent diversification

The 3 months correlation between Walker and Verisk is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Verisk Analytics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Verisk Analytics 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 Verisk Analytics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Verisk Analytics has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Verisk Analytics go up and down completely randomly.

Pair Corralation between Walker Dunlop and Verisk Analytics

Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 1.12 times more return on investment than Verisk Analytics. However, Walker Dunlop is 1.12 times more volatile than Verisk Analytics. It trades about -0.02 of its potential returns per unit of risk. Verisk Analytics is currently generating about -0.3 per unit of risk. If you would invest  7,536  in Walker Dunlop on May 4, 2025 and sell it today you would lose (90.00) from holding Walker Dunlop or give up 1.19% of portfolio value over 90 days.

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

Walker Dunlop  vs.  Verisk Analytics

Walker Dunlop

Risk-Adjusted Performance

Weak

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.

Verisk Analytics

Risk-Adjusted Performance

Very Weak

Over the last 90 days Verisk Analytics has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Pair Trading with Walker Dunlop and Verisk Analytics

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

The idea behind Walker Dunlop and Verisk Analytics 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.