Correlation Between Walker Dunlop and CleanTech Lithium

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

By analyzing existing cross correlation between Walker Dunlop and CleanTech Lithium Plc, you can compare the effects of market volatilities on Walker Dunlop and CleanTech Lithium 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 CleanTech Lithium. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walker Dunlop and CleanTech Lithium.

Diversification Opportunities for Walker Dunlop and CleanTech Lithium

-0.19

Correlation Coefficient

Walker Dunlop  CleanTech Lithium

Good diversification

The 3 months correlation between Walker and CleanTech is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and CleanTech Lithium Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CleanTech Lithium Plc 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 CleanTech Lithium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CleanTech Lithium Plc has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and CleanTech Lithium go up and down completely randomly.

Pair Corralation between Walker Dunlop and CleanTech Lithium

Allowing for the 90-day total investment horizon Walker Dunlop is expected to under-perform the CleanTech Lithium. But the stock apears to be less risky and, when comparing its historical volatility, Walker Dunlop is 1.45 times less risky than CleanTech Lithium. The stock trades about -0.18 of its potential returns per unit of risk. The CleanTech Lithium Plc is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  8.00  in CleanTech Lithium Plc on September 5, 2025 and sell it today you would earn a total of  2.00  from holding CleanTech Lithium Plc or generate 25.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	97.67%
Values	Daily Returns

Walker Dunlop  vs.  CleanTech Lithium Plc

Walker Dunlop

Risk-Adjusted Performance

Weakest

Over the last 90 days Walker Dunlop has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's fundamental indicators remain rather sound which may send shares a bit higher in January 2026. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

CleanTech Lithium Plc

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in CleanTech Lithium Plc are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak technical indicators, CleanTech Lithium reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Walker Dunlop and CleanTech Lithium

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

The idea behind Walker Dunlop and CleanTech Lithium Plc 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.

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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.