Correlation Between Walker Dunlop and Kinetics Paradigm
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Kinetics Paradigm 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 Kinetics Paradigm into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Kinetics Paradigm Fund, you can compare the effects of market volatilities on Walker Dunlop and Kinetics Paradigm 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 Kinetics Paradigm. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Kinetics Paradigm.
Diversification Opportunities for Walker Dunlop and Kinetics Paradigm
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Walker and Kinetics is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Kinetics Paradigm Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinetics Paradigm 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 Kinetics Paradigm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinetics Paradigm has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Kinetics Paradigm go up and down completely randomly.
Pair Corralation between Walker Dunlop and Kinetics Paradigm
Allowing for the 90-day total investment horizon Walker Dunlop is expected to under-perform the Kinetics Paradigm. In addition to that, Walker Dunlop is 1.29 times more volatile than Kinetics Paradigm Fund. It trades about -0.15 of its total potential returns per unit of risk. Kinetics Paradigm Fund is currently generating about -0.05 per unit of volatility. If you would invest 11,789 in Kinetics Paradigm Fund on September 4, 2025 and sell it today you would lose (839.00) from holding Kinetics Paradigm Fund or give up 7.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Walker Dunlop vs. Kinetics Paradigm Fund
Performance |
| Timeline |
| Walker Dunlop |
| Kinetics Paradigm |
Walker Dunlop and Kinetics Paradigm Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Kinetics Paradigm
The main advantage of trading using opposite Walker Dunlop and Kinetics Paradigm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Kinetics Paradigm 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 Kinetics Paradigm will offset losses from the drop in Kinetics Paradigm's long position.| Walker Dunlop vs. United Airlines Holdings | Walker Dunlop vs. Singapore Airlines | Walker Dunlop vs. Nok Airlines Public | Walker Dunlop vs. Martin Marietta Materials |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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