Correlation Between Walker Dunlop and Angel Oak
Can any of the company-specific risk be diversified away by investing in both Walker Dunlop and Angel Oak 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 Angel Oak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walker Dunlop and Angel Oak Financial, you can compare the effects of market volatilities on Walker Dunlop and Angel Oak 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 Angel Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and Angel Oak.
Diversification Opportunities for Walker Dunlop and Angel Oak
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Walker and Angel is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Angel Oak Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Angel Oak Financial 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 Angel Oak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Angel Oak Financial has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Angel Oak go up and down completely randomly.
Pair Corralation between Walker Dunlop and Angel Oak
Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 10.24 times more return on investment than Angel Oak. However, Walker Dunlop is 10.24 times more volatile than Angel Oak Financial. It trades about 0.01 of its potential returns per unit of risk. Angel Oak Financial is currently generating about 0.06 per unit of risk. If you would invest 6,572 in Walker Dunlop on August 29, 2025 and sell it today you would lose (62.00) from holding Walker Dunlop or give up 0.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Walker Dunlop vs. Angel Oak Financial
Performance |
| Timeline |
| Walker Dunlop |
| Angel Oak Financial |
Walker Dunlop and Angel Oak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walker Dunlop and Angel Oak
The main advantage of trading using opposite Walker Dunlop and Angel Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walker Dunlop position performs unexpectedly, Angel Oak 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 Angel Oak will offset losses from the drop in Angel Oak's long position.| Walker Dunlop vs. NXP Semiconductors NV | Walker Dunlop vs. Pintec Technology Holdings | Walker Dunlop vs. Academy Sports Outdoors | Walker Dunlop vs. Tencent Music Entertainment |
| Angel Oak vs. Vanguard Total Stock | Angel Oak vs. Vanguard 500 Index | Angel Oak vs. Vanguard Total Stock | Angel Oak vs. Vanguard Total Stock |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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