Correlation Between Walker Dunlop and Strauss Group

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

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

Diversification Opportunities for Walker Dunlop and Strauss Group

0.0

Correlation Coefficient

Walker Dunlop  Strauss Group

Pay attention - limited upside

The 3 months correlation between Walker and Strauss is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Strauss Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strauss Group 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 Strauss Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strauss Group has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Strauss Group go up and down completely randomly.

Pair Corralation between Walker Dunlop and Strauss Group

If you would invest  8,145  in Walker Dunlop on February 20, 2024 and sell it today you would earn a total of  2,095  from holding Walker Dunlop or generate 25.72% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Walker Dunlop  vs.  Strauss Group

Walker Dunlop

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Walker Dunlop are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, Walker Dunlop may actually be approaching a critical reversion point that can send shares even higher in June 2024.

Strauss Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Strauss Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable forward-looking indicators, Strauss Group 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 Strauss Group

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

The idea behind Walker Dunlop and Strauss Group 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.