Correlation Between Sydbank A/S and Walker Dunlop

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

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

Diversification Opportunities for Sydbank A/S and Walker Dunlop

-0.24

Correlation Coefficient

Sydbank A/S  Walker Dunlop

Very good diversification

The 3 months correlation between Sydbank and Walker is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Sydbank AS and Walker Dunlop in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Walker Dunlop and Sydbank A/S 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 Sydbank AS 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 Sydbank A/S i.e., Sydbank A/S and Walker Dunlop go up and down completely randomly.

Pair Corralation between Sydbank A/S and Walker Dunlop

Assuming the 90 days horizon Sydbank AS is expected to generate 0.77 times more return on investment than Walker Dunlop. However, Sydbank AS is 1.29 times less risky than Walker Dunlop. It trades about 0.15 of its potential returns per unit of risk. Walker Dunlop is currently generating about 0.02 per unit of risk. If you would invest  5,430  in Sydbank AS on April 20, 2025 and sell it today you would earn a total of  910.00  from holding Sydbank AS or generate 16.76% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	96.88%
Values	Daily Returns

Sydbank AS  vs.  Walker Dunlop

Sydbank A/S

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Sydbank AS are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Sydbank A/S reported solid returns over the last few months and may actually be approaching a breakup point.

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 Sydbank A/S and Walker Dunlop

The main advantage of trading using opposite Sydbank A/S and Walker Dunlop positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sydbank A/S 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 Sydbank AS 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.