Correlation Between Walker Dunlop and Multi Manager
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Multi Manager 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 Multi Manager into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Multi Manager Directional Alternative, you can compare the effects of market volatilities on Walker Dunlop and Multi Manager 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 Multi Manager. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Multi Manager.
Diversification Opportunities for Walker Dunlop and Multi Manager
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Walker and Multi is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Multi Manager Directional Alte in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multi Manager Direct 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 Multi Manager. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multi Manager Direct has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Multi Manager go up and down completely randomly.
Pair Corralation between Walker Dunlop and Multi Manager
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 5.1 times more return on investment than Multi Manager. However, Walker Dunlop is 5.1 times more volatile than Multi Manager Directional Alternative. It trades about 0.15 of its potential returns per unit of risk. Multi Manager Directional Alternative is currently generating about 0.22 per unit of risk. If you would invest 7,085 in Walker Dunlop on June 10, 2025 and sell it today you would earn a total of 1,546 from holding Walker Dunlop or generate 21.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.41% |
| Values | Daily Returns |
Walker Dunlop vs. Multi Manager Directional Alte
Performance |
| Timeline |
| Walker Dunlop |
| Multi Manager Direct |
Walker Dunlop and Multi Manager Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Multi Manager
The main advantage of trading using opposite Walker Dunlop and Multi Manager positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Multi Manager 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 Multi Manager will offset losses from the drop in Multi Manager's long position.| Walker Dunlop vs. Encore Capital Group | Walker Dunlop vs. Greystone Housing Impact | Walker Dunlop vs. Kinsale Capital Group | Walker Dunlop vs. Live Oak Bancshares, |
| Multi Manager vs. Qs Growth Fund | Multi Manager vs. Vanguard Intermediate Term Tax Exempt | Multi Manager vs. Tfa Alphagen Growth | Multi Manager vs. Gmo E Plus |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |