Correlation Between Walker Dunlop and TLSAU

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

By analyzing existing cross correlation between Walker Dunlop and TLSAU 3125 07 APR 25, you can compare the effects of market volatilities on Walker Dunlop and TLSAU 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 TLSAU. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and TLSAU.

Diversification Opportunities for Walker Dunlop and TLSAU

-0.71

Correlation Coefficient

Walker Dunlop  TLSAU

Pay attention - limited upside

The 3 months correlation between Walker and TLSAU is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and TLSAU 3125 07 APR 25 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TLSAU 3125 07 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 TLSAU. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TLSAU 3125 07 has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and TLSAU go up and down completely randomly.

Pair Corralation between Walker Dunlop and TLSAU

Allowing for the 90-day total investment horizon Walker Dunlop is expected to under-perform the TLSAU. In addition to that, Walker Dunlop is 4.36 times more volatile than TLSAU 3125 07 APR 25. It trades about -0.09 of its total potential returns per unit of risk. TLSAU 3125 07 APR 25 is currently generating about -0.22 per unit of volatility. If you would invest  9,962  in TLSAU 3125 07 APR 25 on December 30, 2024 and sell it today you would lose (128.00) from holding TLSAU 3125 07 APR 25 or give up 1.28% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	20.97%
Values	Daily Returns

Walker Dunlop  vs.  TLSAU 3125 07 APR 25

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 latest weak performance, the Stock's fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

TLSAU 3125 07

Risk-Adjusted Performance

Very Weak

Over the last 90 days TLSAU 3125 07 APR 25 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, TLSAU is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Walker Dunlop and TLSAU

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

The idea behind Walker Dunlop and TLSAU 3125 07 APR 25 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.