Correlation Between Walker Dunlop and Allegheny Technologies
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Allegheny Technologies 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 Allegheny Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Allegheny Technologies Incorporated, you can compare the effects of market volatilities on Walker Dunlop and Allegheny Technologies 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 Allegheny Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Allegheny Technologies.
Diversification Opportunities for Walker Dunlop and Allegheny Technologies
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Walker and Allegheny is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Allegheny Technologies Incorpo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allegheny Technologies 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 Allegheny Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allegheny Technologies has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Allegheny Technologies go up and down completely randomly.
Pair Corralation between Walker Dunlop and Allegheny Technologies
Allowing for the 90-day total investment horizon Walker Dunlop is expected to under-perform the Allegheny Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Walker Dunlop is 1.05 times less risky than Allegheny Technologies. The stock trades about -0.14 of its potential returns per unit of risk. The Allegheny Technologies Incorporated is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 7,651 in Allegheny Technologies Incorporated on September 3, 2025 and sell it today you would earn a total of 2,236 from holding Allegheny Technologies Incorporated or generate 29.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walker Dunlop vs. Allegheny Technologies Incorpo
Performance |
| Timeline |
| Walker Dunlop |
| Allegheny Technologies |
Walker Dunlop and Allegheny Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Allegheny Technologies
The main advantage of trading using opposite Walker Dunlop and Allegheny Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Allegheny Technologies 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 Allegheny Technologies will offset losses from the drop in Allegheny Technologies' long position.| Walker Dunlop vs. G III Apparel Group | Walker Dunlop vs. Iron Road Limited | Walker Dunlop vs. Sinclair Broadcast Group | Walker Dunlop vs. Road King Infrastructure |
| Allegheny Technologies vs. Braemar Hotels Resorts | Allegheny Technologies vs. Sabre Insurance Group | Allegheny Technologies vs. Life Insurance | Allegheny Technologies vs. KNOT Offshore Partners |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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