Correlation Between Lundin Gold and Walker Dunlop

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

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

Diversification Opportunities for Lundin Gold and Walker Dunlop

-0.73

Correlation Coefficient

Lundin Gold  Walker Dunlop

Pay attention - limited upside

The 3 months correlation between Lundin and Walker is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Lundin Gold and Walker Dunlop in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Walker Dunlop and Lundin Gold 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 Lundin Gold 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 Lundin Gold i.e., Lundin Gold and Walker Dunlop go up and down completely randomly.

Pair Corralation between Lundin Gold and Walker Dunlop

Assuming the 90 days trading horizon Lundin Gold is expected to generate 1.46 times more return on investment than Walker Dunlop. However, Lundin Gold is 1.46 times more volatile than Walker Dunlop. It trades about 0.06 of its potential returns per unit of risk. Walker Dunlop is currently generating about 0.02 per unit of risk. If you would invest  3,659  in Lundin Gold on April 20, 2025 and sell it today you would earn a total of  349.00  from holding Lundin Gold or generate 9.54% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.44%
Values	Daily Returns

Lundin Gold  vs.  Walker Dunlop

Lundin Gold

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Lundin Gold are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Lundin Gold may actually be approaching a critical reversion point that can send shares even higher in August 2025.

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 Lundin Gold and Walker Dunlop

The main advantage of trading using opposite Lundin Gold and Walker Dunlop positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lundin Gold 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 Lundin Gold 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.