Correlation Between Walker Dunlop and WisdomTree Managed

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

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

Diversification Opportunities for Walker Dunlop and WisdomTree Managed

0.3

Correlation Coefficient

Walker Dunlop  WisdomTree Managed

Weak diversification

The 3 months correlation between Walker and WisdomTree is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and WisdomTree Managed Futures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Managed 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 WisdomTree Managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Managed has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and WisdomTree Managed go up and down completely randomly.

Pair Corralation between Walker Dunlop and WisdomTree Managed

Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 1.75 times less return on investment than WisdomTree Managed. In addition to that, Walker Dunlop is 3.84 times more volatile than WisdomTree Managed Futures. It trades about 0.01 of its total potential returns per unit of risk. WisdomTree Managed Futures is currently generating about 0.04 per unit of volatility. If you would invest  3,241  in WisdomTree Managed Futures on May 1, 2025 and sell it today you would earn a total of  366.00  from holding WisdomTree Managed Futures or generate 11.29% return on investment over 90 days.

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

Walker Dunlop  vs.  WisdomTree Managed Futures

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.

WisdomTree Managed

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in WisdomTree Managed Futures are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable primary indicators, WisdomTree Managed is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Walker Dunlop and WisdomTree Managed

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

The idea behind Walker Dunlop and WisdomTree Managed Futures 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.