Correlation Between Walker Dunlop and Greentown Management

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

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

Diversification Opportunities for Walker Dunlop and Greentown Management

-0.06

Correlation Coefficient

Walker Dunlop  Greentown Management

Good diversification

The 3 months correlation between Walker and Greentown is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Greentown Management Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greentown Management 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 Greentown Management. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greentown Management has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Greentown Management go up and down completely randomly.

Pair Corralation between Walker Dunlop and Greentown Management

Allowing for the 90-day total investment horizon Walker Dunlop is expected to under-perform the Greentown Management. But the stock apears to be less risky and, when comparing its historical volatility, Walker Dunlop is 1.78 times less risky than Greentown Management. The stock trades about -0.04 of its potential returns per unit of risk. The Greentown Management Holdings is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  37.00  in Greentown Management Holdings on September 13, 2025 and sell it today you would earn a total of  13.00  from holding Greentown Management Holdings or generate 35.14% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.8%
Values	Daily Returns

Walker Dunlop  vs.  Greentown Management Holdings

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.

Greentown Management

Risk-Adjusted Performance

Weak

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

Pair Trading with Walker Dunlop and Greentown Management

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

The idea behind Walker Dunlop and Greentown Management Holdings 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.