# Correlation Between Walker Dunlop and Simplify Macro

Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Simplify Macro 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 Simplify Macro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Simplify Macro Strategy, you can compare the effects of market volatilities on Walker Dunlop and Simplify Macro 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 Simplify Macro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Simplify Macro.

## Diversification Opportunities for Walker Dunlop and Simplify Macro

-0.27 | Correlation Coefficient |

### Very good diversification

The 3 months correlation between Walker and Simplify is

**-0.27**. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Simplify Macro Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simplify Macro Strategy 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 Simplify Macro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simplify Macro Strategy has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Simplify Macro go up and down completely randomly.## Pair Corralation between Walker Dunlop and Simplify Macro

Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 3.17 times more return on investment than Simplify Macro. However, Walker Dunlop is 3.17 times more volatile than Simplify Macro Strategy. It trades about 0.07 of its potential returns per unit of risk. Simplify Macro Strategy is currently generating about -0.09 per unit of risk. If you would invest

**9,971**in Walker Dunlop on**May 13, 2024**and sell it today you would**earn a total of 293.00**from holding Walker Dunlop or generate**2.94%**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. Simplify Macro Strategy

Performance |

Timeline |

Walker Dunlop |

Simplify Macro Strategy |

## Walker Dunlop and Simplify Macro Volatility Contrast

Predicted Return Density |

Returns |

## Pair Trading with Walker Dunlop and Simplify Macro

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

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Check out your portfolio center.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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.

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