Correlation Between Walker Dunlop and WisdomTree Japan
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and WisdomTree Japan 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 WisdomTree Japan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and WisdomTree Japan Hedged, you can compare the effects of market volatilities on Walker Dunlop and WisdomTree Japan 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 WisdomTree Japan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and WisdomTree Japan.
Diversification Opportunities for Walker Dunlop and WisdomTree Japan
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Walker and WisdomTree is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and WisdomTree Japan Hedged in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Japan Hedged 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 WisdomTree Japan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Japan Hedged has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and WisdomTree Japan go up and down completely randomly.
Pair Corralation between Walker Dunlop and WisdomTree Japan
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 2.67 times more return on investment than WisdomTree Japan. However, Walker Dunlop is 2.67 times more volatile than WisdomTree Japan Hedged. It trades about 0.18 of its potential returns per unit of risk. WisdomTree Japan Hedged is currently generating about 0.08 per unit of risk. If you would invest 6,834 in Walker Dunlop on May 27, 2025 and sell it today you would earn a total of 1,827 from holding Walker Dunlop or generate 26.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 43.75% |
| Values | Daily Returns |
Walker Dunlop vs. WisdomTree Japan Hedged
Performance |
| Timeline |
| Walker Dunlop |
| WisdomTree Japan Hedged |
Risk-Adjusted Performance
Mild
Weak | Strong |
Walker Dunlop and WisdomTree Japan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and WisdomTree Japan
The main advantage of trading using opposite Walker Dunlop and WisdomTree Japan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, WisdomTree Japan 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 WisdomTree Japan will offset losses from the drop in WisdomTree Japan'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, |
| WisdomTree Japan vs. WisdomTree Emerging Markets | WisdomTree Japan vs. WisdomTree SmallCap Quality | WisdomTree Japan vs. First Trust Emerging | WisdomTree Japan vs. First Trust Japan |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |