Correlation Between Mastercard and Walker Dunlop
Can any of the company-specific risk be diversified away by investing in both Mastercard and Walker Dunlop 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 Mastercard and Walker Dunlop into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mastercard and Walker Dunlop, you can compare the effects of market volatilities on Mastercard and Walker Dunlop 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 Mastercard with a short position of Walker Dunlop. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mastercard and Walker Dunlop.
Diversification Opportunities for Mastercard and Walker Dunlop
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mastercard and Walker is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Mastercard and Walker Dunlop in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Walker Dunlop and Mastercard 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 Mastercard are associated (or correlated) with Walker Dunlop. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Walker Dunlop has no effect on the direction of Mastercard i.e., Mastercard and Walker Dunlop go up and down completely randomly.
Pair Corralation between Mastercard and Walker Dunlop
Allowing for the 90-day total investment horizon Mastercard is expected to generate 0.82 times more return on investment than Walker Dunlop. However, Mastercard is 1.22 times less risky than Walker Dunlop. It trades about 0.01 of its potential returns per unit of risk. Walker Dunlop is currently generating about -0.11 per unit of risk. If you would invest 55,669 in Mastercard on March 27, 2025 and sell it today you would earn a total of 84.00 from holding Mastercard or generate 0.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mastercard vs. Walker Dunlop
Performance |
| Timeline |
| Mastercard |
| Walker Dunlop |
Mastercard and Walker Dunlop Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mastercard and Walker Dunlop
The main advantage of trading using opposite Mastercard and Walker Dunlop positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mastercard position performs unexpectedly, Walker Dunlop 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 Walker Dunlop will offset losses from the drop in Walker Dunlop's long position.| Mastercard vs. American Express | Mastercard vs. PayPal Holdings | Mastercard vs. Upstart Holdings | Mastercard vs. Capital One Financial |
| Walker Dunlop vs. Mr Cooper Group | Walker Dunlop vs. Velocity Financial Llc | Walker Dunlop vs. Security National Financial | Walker Dunlop vs. Encore Capital Group |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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