Correlation Between Walker Dunlop and Paramount Global

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

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

Diversification Opportunities for Walker Dunlop and Paramount Global

0.27

Correlation Coefficient

Walker Dunlop  Paramount Global

Modest diversification

The 3 months correlation between Walker and Paramount is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Walker Dunlop and Paramount Global Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Paramount Global Class 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 Paramount Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Paramount Global Class has no effect on the direction of Walker Dunlop i.e., Walker Dunlop and Paramount Global go up and down completely randomly.

Pair Corralation between Walker Dunlop and Paramount Global

Allowing for the 90-day total investment horizon Walker Dunlop is expected to generate 0.57 times more return on investment than Paramount Global. However, Walker Dunlop is 1.76 times less risky than Paramount Global. It trades about 0.11 of its potential returns per unit of risk. Paramount Global Class is currently generating about -0.49 per unit of risk. If you would invest  7,567  in Walker Dunlop on July 27, 2025 and sell it today you would earn a total of  1,009  from holding Walker Dunlop or generate 13.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	14.06%
Values	Daily Returns

Walker Dunlop  vs.  Paramount Global Class

Walker Dunlop

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Walker Dunlop are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of rather conflicting fundamental indicators, Walker Dunlop exhibited solid returns over the last few months and may actually be approaching a breakup point.

Paramount Global Class

Risk-Adjusted Performance

Weakest

Over the last 90 days Paramount Global Class has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in November 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Walker Dunlop and Paramount Global

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

The idea behind Walker Dunlop and Paramount Global Class 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.