Correlation Between Walker Dunlop and Sensata Technologies
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Sensata 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 Sensata 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 Sensata Technologies Holding, you can compare the effects of market volatilities on Walker Dunlop and Sensata 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 Sensata Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Sensata Technologies.
Diversification Opportunities for Walker Dunlop and Sensata Technologies
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Walker and Sensata is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Sensata Technologies Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sensata 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 Sensata Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sensata Technologies has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Sensata Technologies go up and down completely randomly.
Pair Corralation between Walker Dunlop and Sensata Technologies
Allowing for the 90-day total investment horizon Walker Dunlop is expected to under-perform the Sensata Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Walker Dunlop is 1.03 times less risky than Sensata Technologies. The stock trades about -0.19 of its potential returns per unit of risk. The Sensata Technologies Holding is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 3,157 in Sensata Technologies Holding on September 9, 2025 and sell it today you would earn a total of 219.00 from holding Sensata Technologies Holding or generate 6.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walker Dunlop vs. Sensata Technologies Holding
Performance |
| Timeline |
| Walker Dunlop |
| Sensata Technologies |
Walker Dunlop and Sensata Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Sensata Technologies
The main advantage of trading using opposite Walker Dunlop and Sensata Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Sensata 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 Sensata Technologies will offset losses from the drop in Sensata Technologies' long position.| Walker Dunlop vs. Sezzle Inc | Walker Dunlop vs. Enova International | Walker Dunlop vs. Banc of California, | Walker Dunlop vs. Bread Financial Holdings |
| Sensata Technologies vs. OSI Systems | Sensata Technologies vs. Itron Inc | Sensata Technologies vs. Novanta | Sensata Technologies vs. Vicor |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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