Correlation Between Walker Dunlop and WisdomTree Interest

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

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

Diversification Opportunities for Walker Dunlop and WisdomTree Interest

-0.63

Correlation Coefficient

Walker Dunlop  WisdomTree Interest

Excellent diversification

The 3 months correlation between Walker and WisdomTree is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and WisdomTree Interest Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Interest Rate 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 WisdomTree Interest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Interest Rate has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and WisdomTree Interest go up and down completely randomly.

Pair Corralation between Walker Dunlop and WisdomTree Interest

Allowing for the 90-day total investment horizon Walker Dunlop is expected to under-perform the WisdomTree Interest. In addition to that, Walker Dunlop is 12.33 times more volatile than WisdomTree Interest Rate. It trades about -0.19 of its total potential returns per unit of risk. WisdomTree Interest Rate is currently generating about 0.16 per unit of volatility. If you would invest  2,209  in WisdomTree Interest Rate on September 9, 2025 and sell it today you would earn a total of  43.00  from holding WisdomTree Interest Rate or generate 1.95% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.46%
Values	Daily Returns

Walker Dunlop  vs.  WisdomTree Interest Rate

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.

WisdomTree Interest Rate

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in WisdomTree Interest Rate are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, WisdomTree Interest is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Walker Dunlop and WisdomTree Interest

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

The idea behind Walker Dunlop and WisdomTree Interest Rate 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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.