Correlation Between ROMERIKE SPAREBANK and Walker Dunlop

Can any of the company-specific risk be diversified away by investing in both ROMERIKE SPAREBANK and Walker Dunlop 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 ROMERIKE SPAREBANK and Walker Dunlop into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ROMERIKE SPAREBANK NK and Walker Dunlop, you can compare the effects of market volatilities on ROMERIKE SPAREBANK and Walker Dunlop 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 ROMERIKE SPAREBANK with a short position of Walker Dunlop. Check out your portfolio center. Please also check ongoing floating volatility patterns of ROMERIKE SPAREBANK and Walker Dunlop.

Diversification Opportunities for ROMERIKE SPAREBANK and Walker Dunlop

-0.68

Correlation Coefficient

ROMERIKE SPAREBANK  Walker Dunlop

Excellent diversification

The 3 months correlation between ROMERIKE and Walker is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding ROMERIKE SPAREBANK NK and Walker Dunlop in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Walker Dunlop and ROMERIKE SPAREBANK 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 ROMERIKE SPAREBANK NK are associated (or correlated) with Walker Dunlop. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Walker Dunlop has no effect on the direction of ROMERIKE SPAREBANK i.e., ROMERIKE SPAREBANK and Walker Dunlop go up and down completely randomly.

Pair Corralation between ROMERIKE SPAREBANK and Walker Dunlop

Assuming the 90 days horizon ROMERIKE SPAREBANK is expected to generate 13.43 times less return on investment than Walker Dunlop. But when comparing it to its historical volatility, ROMERIKE SPAREBANK NK is 2.41 times less risky than Walker Dunlop. It trades about 0.0 of its potential returns per unit of risk. Walker Dunlop is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  6,195  in Walker Dunlop on April 20, 2025 and sell it today you would earn a total of  55.00  from holding Walker Dunlop or generate 0.89% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

ROMERIKE SPAREBANK NK  vs.  Walker Dunlop

ROMERIKE SPAREBANK

Risk-Adjusted Performance

Very Weak

Over the last 90 days ROMERIKE SPAREBANK NK has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, ROMERIKE SPAREBANK is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Walker Dunlop

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Walker Dunlop are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Walker Dunlop is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with ROMERIKE SPAREBANK and Walker Dunlop

The main advantage of trading using opposite ROMERIKE SPAREBANK and Walker Dunlop positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ROMERIKE SPAREBANK position performs unexpectedly, Walker Dunlop 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 Walker Dunlop will offset losses from the drop in Walker Dunlop's long position.

The idea behind ROMERIKE SPAREBANK NK and Walker Dunlop pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.